Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Earned Income Credit (EIC)

Qualifying for the EIC

Earned Income Not Qualifying for EIC

One 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.

Tax Software Hint

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.

Line 7 of Form 1040, PRI next to line.