Indian Employment Credit

AAA

DEFINITION of 'Indian Employment Credit'

A monetary incentive offered by the federal government for employers to hire registered Native American Indians and spouses of registered Native American Indians who live on or near an Indian reservation and work for an employer on that reservation. The tax credit provides a dollar-for-dollar reduction in the business's taxable income.

INVESTOPEDIA EXPLAINS 'Indian Employment Credit'

Some Native American Indian employees will not qualify the employer for the tax credit, including those whose wages from the company do not meet a certain threshold specified by the Internal Revenue Service, those who are 5% owners of the company and those whose work is related to certain gaming activities. Employers must use IRS form 8845, Indian Employment Credit, to claim the credit.

RELATED TERMS
  1. Business Tax Credits

    A number of federal income tax credits available to businesses ...
  2. Work Opportunity Tax Credit

    A separate, nonrefundable credit that is part of the general ...
  3. Tax Credit

    An amount of money that a taxpayer is able to subtract from the ...
  4. Non-Refundable Tax Credit

    A tax credit that can't reduce the amount of tax owed to less ...
  5. Payroll Tax

    Tax an employer withholds and/or pays on behalf of their employees ...
  6. Working Tax Credit (WTC)

    A tax credit offered to low-income individuals working in the ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Entrepreneurship

    Tax Credit For Plan Expenses Incurred By Small Businesses

    Determine whether your business is eligible to claim a tax credit for establishing a retirement plan.
  2. Savings

    Saver's Tax Credit: A Retirement Savings Incentive

    Here's another reason to put money toward your retirement nest egg.
  3. Taxes

    Get A Tax Credit For Your Foreign Investments

    The foreign tax credit provides a break on investment income made and taxed in a foreign country.
  4. Taxes

    5 Tax Credits You Shouldn't Miss

    If you're not taking advantage of these deductions, you could be missing out on tax savings.
  5. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
  6. Stock Analysis

    Can Modi Mania Continue?

    Investors are still swooning over India’s new prime minister, Narendra Modi, whose pro-business platform inspired a record voter turnout of 66 percent in May.
  7. Investing News

    Sun Pharma And Ranbaxy: An Ideal Pharma Marriage?

    The Sun Pharma merger with Ranbaxy will blend the complementary market strengths and areas of expertise of each company and create a powerful pharma force.
  8. Economics

    Growth and Stabilization In The Global Economy

    The continued advance for stocks implies a stabilization in international economies, which indicates global growth is steadying after declining last year.
  9. Taxes

    Which Is Better? Tax Preparer Or Tax Software

    Every taxpayer – and every year – is different, so here are four factors to help you decide whether a tax pro or software is best for you.
  10. Taxes

    Before You Visit Your Tax Preparer: Do This

    The earlier you start preparing your tax records and documents, the more likely you are to have a smooth tax return experience – and all the tax benefits you're due.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center