How to report earnings while incarcerated

Forum|Forum|4 years ago
January 6, 2022
10 replies
46 views

Client earned money while incarcerated in 2021. Will he receive a tax slip? He was released mid-2021, and has some earnings since. Eligible for EIC. Can I also request the $1400 Recovery Credit?

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Best answer by Terry53029

Being incarcerated in 2021 does not affect eligibility for stimulus

sjrcpa

Level 15

You report income earned while in jail the same as income earned if not in jail.

The more I know the more I don’t know.

G

GretaAuthor

Level 7

Client likely will not get a W-2 or a 1099. The pay he received was net after food & rent were deducted. And it's not eligible for EIC. The numbers are small, so I'll try to come close. Not sure whether he is eligible for the stimulus payments. I was glad to hear he was forced to get a vaccine.

T

Terry53029

Answer

Intuit Community Champion

Being incarcerated in 2021 does not affect eligibility for stimulus

qbteachmt

Level 15

I had a bit of trouble, but finally found a short article/podcast segment not behind a paywall that covers the issues for inmates and all 3 of the EIP distributions, including garnishment issues, debit card mishandling, etc. It includes reference to the class action lawsuit that released funds to inmates, but when I click it, it is considered a suspicious external link. Here's the main article:

https://www.nwnewsnetwork.org/government-and-politics/2021-03-02/prisoners-eligible-for-stimulus-checks-but-getting-payout-behind-bars-is-complicated

On last night's national news, there was a piece on the Boston Marathon bomber getting the money and using it for gifts to family, when there also is a cry for restitution payments to his victims.

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