Yes, income earned on work release is the same as income earned while not in jail.

Unlike income earned in prison, these wages qualify for the Earned Income Tax Credit.

For more information, follow this link: Earned Income

So are any of the costs (i.e. all the fees taken by the work release program) deductible as costs related to work?

Income received is taxable income.  See here.

However, pay received for work while an inmate in a penal institution will not count as earned income towards the Earned Income Tax Credit.

Unreimbursed employee expenses are no longer deductible under current Federal tax law.

I already filed. I don't think it makes much difference but I was in work release. I did not click on that option. Will this affect my return. I can't see how I was paying my way and paying taxes just like anyone on the.street.

• Can you tell me what your outcome was please? Were you deducted or anything come of it? I just did the same thing and I'm worried about them deducting me or something because I didn't even see the options for it.