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New Member
posted Jun 4, 2019 1:15:08 PM

If I am on parole does that count as being an inmate?

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5 Replies
Expert Alumni
Jun 4, 2019 1:15:10 PM

No, if you were not in a halfway house, incarcerated or in a work release program . Income earned as an inmate will not qualify as earned income for the Earned Income Tax Credit. 

New Member
Aug 10, 2022 10:33:36 PM

I was just told, BY THE IRS on a phone call, that being on parole is the same as being an inmate and thus I am not eligable for my tax return for money that I worked hard for after I got out of prison. So is that true or not???

Level 15
Aug 11, 2022 5:29:03 AM

Amounts received for work performed while an inmate in a penal institution aren't earned income for the earned income credit.  This includes amounts received for work performed while in a work release program or while in a halfway house.

2021 Publication 596 (irs.gov) at. p. 20.

 

Level 15
Aug 11, 2022 8:17:40 AM

@batmanvoodoo - which tax year are we talking about? you never stated what specific money you were not getting. 

 

If you had money withheld from your paychecks, filing a tax return may return those withholdings to you, depending on whether you are due a refund. 

 

Also, if this is the 2020 or 2021 tax return, and you did not receive the stimulus payments, that would be resolved on the tax return as well. 

Level 15
Aug 12, 2022 9:18:29 AM

@Scorpio 85 

If part or all of your refund was from the earned income credit, you are not eligible if the work was performed in a halfway house or penal institution, because that work is not considered “earned” for income tax purposes.  However, if you are due a refund because your tax withheld was more than your tax owed, you are absolutely entitled to that portion of your refund.