If I was on home confinement does that still count as living in the half way house and why when I got to that question did it deduct money from my return

[Kadian · Accepted solution]

Being confined to your home "house arrest" is not the same as living in a halfway house.

The reason you notice the decrease in your refund when you answered yes to living in a half way house is, while incarcerated or living in a Half Way House, any income you earned during this time does not qualify as earned income for the Earned Income Credit.