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ang222
New Member

1099-MISC Inmate Income

I worked all year and received a W2, my husband has been incarcerated all year. He received a 1099-MISC for $867, we have 2 dependent children, so we get the EIC. There is nowhere that I can find that lets you indicate it is money earned while incarcerated on a 1099. Yes, it asks this when entering a W2 but not for 1099's. It lowered my refund over $500. Why? I understand that it is "considered self employment" but that seems pretty high to deduct that much. Is there anything I can do that will help raise my refund before I file. 

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1 Reply
JamesG1
Employee Tax Expert

1099-MISC Inmate Income

Pay received for work when you were an inmate in a penal institution is not considered earned income but a form of job training.

 

The payments reported on an IRS form 1099-MISC are taxable but not subject to self-employment income.

 

In TurboTax Online, follow the steps below to report income on an IRS Form 1099-MISC.

 

  • Select Federal from the left side menu.
  • Select Wages & Income from the left side menu.
  • Scroll down to Less Common Income.  Click the down arrow to the right.
  • Click Start / Revisit to the right of Miscellaneous Income.
  • Click Start / Revisit to the right of Other reportable income.
  • Describe the income as ‘incarcerated’ or ‘prison inmate’.

The income is reported on Schedule 1 Additional Income and Adjustments to Income, line 8z. 

 

View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.


 

 

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