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Follow these instruction for reporting income that is not reported on a W-2:
Other income not reported on Form W-2 must be reported on line 7 on Form 1040. TurboTax automatically transfers this income to the correct line.
You are correct in that income earned in prison or a halfway house doesn't qualify for the Earned Income Credit. However, the above instructions are correct for how to enter this income on your return.
Later in the process, you will have to answer questions to determine if you qualify for the Earned Income Credit. You will reach the screen Do any of these uncommon situations apply? where you will check the box that you earned this income while in prison, or work release or in a related halfway house.
You will then be able to enter the amount that doesn't qualify for the Earned Income Credit.
Follow these instruction for reporting income that is not reported on a W-2:
Other income not reported on Form W-2 must be reported on line 7 on Form 1040. TurboTax automatically transfers this income to the correct line.
Excuse me, but IRS rules states "Pay received for work while an inmate in a penal institution" IS NOT EARNED INCOME. Turbotax will treat "Prison Income" as earned if reported as "other income not already reported in W2 or Form 1099" Software errors do not make a "false claim" (or IRS fraud) into a "real claim".
"https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income
You are correct in that income earned in prison or a halfway house doesn't qualify for the Earned Income Credit. However, the above instructions are correct for how to enter this income on your return.
Later in the process, you will have to answer questions to determine if you qualify for the Earned Income Credit. You will reach the screen Do any of these uncommon situations apply? where you will check the box that you earned this income while in prison, or work release or in a related halfway house.
You will then be able to enter the amount that doesn't qualify for the Earned Income Credit.
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