TaxGuyBill
Level 15

@sjrcpa wrote:

Why wouldn't it be earned income?


 

It is not earned income for purposes of EIC.  ProSeries has a EIC worksheet to enter it or back it out.

 

Earnings while an inmate.

Amounts received for work performed while an inmate in a penal institution aren't earned income when figuring the earned income credit. This includes amounts for work performed while in a work release program or while in a halfway house.

https://www.irs.gov/publications/p596#en_US_2020_publink1000297688