TaxGuyBill
Level 15

@david3 wrote:

I entered the W-2 wages on the EIC Worksheet in the A box below line 2a


 

You entered it in the line that says "If married, and filing as Head of Household, any amount earned by your spouse ..."?

If you scroll down to J-a on the W-2 worksheet, there is a checkbox for work performed while an inmate at a penal institution.  IRS CCA 1998-049 stated that work at a halfway house is treated as working at a penal institution.

Interestingly, for many years Publication 596 specifically stated that work at a halfway house was the same as a penal institution.  However, in 2022 and 2023, that sentence was deleted.  I am unsure if there is a new ruling or why it was deleted.

 

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