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sonner68
New Member

Husband released from prison and in a transitional house. Full parole, does he have any tax breaks or things we should know of?

 
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2 Replies
GiseleD
Expert Alumni

Husband released from prison and in a transitional house. Full parole, does he have any tax breaks or things we should know of?

Regarding the federal return, there are no specific income tax credits that pertain only to parolees. However, the IRS does offer tax guidance in Publication 4935 to people released from penal institutions.

 

Regarding state income tax credits/breaks, without knowing which state you are in, I cannot advise on those.

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Husband released from prison and in a transitional house. Full parole, does he have any tax breaks or things we should know of?

No there are no tax breaks for being released from prison or for living in a transitional house.

 

If the two of you want to file a joint return you can do so.

 

If you were legally married at the end of 2019 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $24,400 (+$1300 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit.

 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

 

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...

 

As you enter his income you will need to carefully note the question after entering his W-2 as to whether his earning were earned while he was in a halfway house.  It is one or two screens after you enter his W-2

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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