If you check that box then it asks you to enter the amount of the income from the halfway house or work release income and subtracts that from the EIC income. That would be shown on the EIC worksheet line 2 a,b & c. The EIC is then calculated using the remaining income that qualifies. You can still get the EIC if you had other earned income.
What exactally did the IRS give as a reason for denying the EIC? The IRS does make mistakes.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
