Jury pay & EIC

[appelman]

Is jury pay earned income for EIC? This sounds like it should be an obvious question, and my intuition tells me the answer is "no," since it is not regarded as compensation. But I have been unable to find a primary source or citation, and secondary sources seem to come down on both sides of the question. For instance, J K Lasser says "yes." Can anyone help?

[JG EA]

I don't know if this helps:

There are two ways to get earned income:

You work for someone who pays you
or
You work in a business you own.

Taxable earned income includes:
Wages, salaries, and tips;
Union strike benefits;
Long-term disability benefits received prior to minimum retirement age;
Net earnings from self-employment.
Examples of Income that is Not Considered Earned:
Interest and dividends
pensions
Social security
Unemployment benefits
Alimony
Child support.

http://www.irs.gov/individuals/article/0,,id=176508,00.html

So, is it work to be on a jury? I felt like I was working.
__________________________________________________ ___________________________
Here is something else:
15.5.4 Jury Duty Payments

Count any portion of a jury payment that is over and above expenses as earned income for the month in which it is received.

http://www.emhandbooks.wi.gov/meh-ebd/Policy_Files/15/MEH_15.5_earned_income.htm#15_5_4

So, it is earned income for Medicaid.

[BOB W]

I don't know if this helps:

http://www.irs.gov/individuals/article/0,,id=176508,00.html

So, is it work to be on a jury? I felt like I was working.
__________________________________________________ ___________________________
Here is something else:
15.5.4 Jury Duty Payments

http://www.emhandbooks.wi.gov/meh-ebd/Policy_Files/15/MEH_15.5_earned_income.htm#15_5_4

So, it is earned income for Medicaid.

"Over and Above" your expenses is earned income.. Now............. must the excess be subject to SE to count for EIC>>>????

[New York Enrolled Agent]

Is jury pay earned income for EIC? This sounds like it should be an obvious question, and my intuition tells me the answer is "no," since it is not regarded as compensation. But I have been unable to find a primary source or citation, and secondary sources seem to come down on both sides of the question. For instance, J K Lasser says "yes." Can anyone help?

I'm pasting a headnote from an SCA. The IRS gives an analysis in the body of the document but I think this answers your question.

SCA 200028035

--------------------------------------------------------------------------------
Jury Fees Not Earned Income for Purposes of the Earned Income Credit
Headnote:
For purposes of earned income credit, jury fees aren't considered earned income.

[ChEAr$]

We might ask the question, is it earned income that is subject to SE tax?
Might that matter?

[BOB W]

I have never seen any kind of BIG dollars from Jury Duty, so I guess we are dealing with concept here rather than important tax consideration.

[appelman]

Thanks for the research, NYEA.

Thanks for the research, NYEA. It's nice to have some hard evidence to support one's prejudices.

[Burke]

We might ask the question, is it earned income that is subject to SE tax?
Might that matter?

No, jury duty is not subj to SE tax.

[taxxcpa]

Jury pay

I have never seen any kind of BIG dollars from Jury Duty .

It could be a lot more if you served on the Grand Jury. I had a client who apparently volunteered for the Grand Jury and got over $ 1000, but as I recall there was no W-2 (not sure) and no self-employment tax.

[FEDUKE404]

Seeking verity

It could be a lot more if you served on the Grand Jury. I had a client who apparently volunteered for the Grand Jury and got over $ 1000, but as I recall there was no W-2 (not sure) and no self-employment tax.

You took the words right out of my mouth. Being on a grand jury can involve a considerable amount of time, as opposed to more common petit jury experiences.

The other unknowns are related to the fact that federal courts pay more, and then there is always the possibility of being a seated juror on a very long trial.

In any case, I would not consider jury duty pay to be "employment" income although, of course, large income can muck up EITC calculations.

I've never seen any tax paperwork for jury pay (such as a Form 1099-MISC) but that does not mean such do not exist.

FE

[BOB W]

You took the words right out of my mouth. Being on a grand jury can involve a considerable amount of time, as opposed to more common petit jury experiences.

The other unknowns are related to the fact that federal courts pay more, and then there is always the possibility of being a seated juror on a very long trial.

In any case, I would not consider jury duty pay to be "employment" income although, of course, large income can muck up EITC calculations.

I've never seen any tax paperwork for jury pay (such as a Form 1099-MISC) but that does not mean such do not exist.

FE

The only thing I have seen is something like a pay stub for the period covering jury duty.