Earned Income Not Qualifying for EICOne income item that is reported on Form W-2, but does not qualify as earned income for EIC purposes, is income received for work while an inmate in a penal institution. This includes work performed while in a work release program or while in a halfway house. To review information related to the software, go to the Volunteer Resource Guide for more information about completing Schedule EIC — Worksheet. If you indicate on the EIC worksheet that the income was earned while an inmate in a penal institution, PRI and the amount will be printed next to Form 1040, line 7.
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