If you earned income while incarcerated, that income is still taxable and needs to be reported on your tax return. Typically, income earned while incarcerated is reported to you on a Form W-2 or Form 1099-NEC. To save your income to your return, you simply enter the information from the form you received in the "W-2" or "Other Income Not Reported Elsewhere" section of our software depending on which form you received. However, you must keep in mind that income earned while incarcerated cannot be included in your Earned Income Credit calculation, so you must subtract it.
How do I enter my income form?
Where you report the income you earned while incarcerated depends on the form you received. If you received a W-2, follow the steps below to save it to your return.
- Federal
- Income
- W-2
- Add a W-2 Wage Statement
If you received a 1099-NEC, you must go here to save it to your return:
- Federal
- Income
- Less Common Income
- Other Income Not Reported Elsewhere
- Enter the dollar amount from your 1099-NEC and select "Wages earned while incarcerated" from the dropdown menu before pressing continue to save
How do I make sure the income isn't being included with my Earned Income Credit calculation?
To subtract your income earned while incarcerated from the Earned Income Credit calculations, please follow the steps listed below.
- Federal
- Income
- Less Common Income
- Other Compensation
- Prisoner Earned Income