The term "halfway house" has two different meanings, which can cause confusion. I assume that your question is related to the Earned Income Credit (EIC). Income earned while you are in a halfway house is not considered "earned income" for purposes of qualifying for the Earned Income Credit. However, as you can see from the information that GiseleD posted, this rule applies to a halfway house for people who are being released from prison. It does not mean a halfway house following treatment for drug or alcohol abuse.
So if you were in prison and started working while you were in a halfway house after prison, you would answer Yes. But if you were in a halfway house following treatment for drug or alcohol abuse, you would answer No. That's not the kind of halfway house that the question refers to.
