How can I file for the money I made in prison

[IsabellaG · Accepted solution]

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.

• Go to Federal Taxes and choose   Wages and Income

• Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice) 

• Choose Other income not already reported on a Form W-2 or Form 1099

•  Answer Yes on the Other Wages Received screen

• Continue past Wages Earned as a Household Employee and Sick or Disability Pay

•  Answer Yes on the Any Other Earned Income screen

•  Choose Other on the Enter Source of Other Earned Income screen

•   Enter your income received in prison on the Any Other Earned Income screen.

[AlbertoMBA]

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

[JohnB5677 · Accepted solution]

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.