This is something I have never heard before today. I was speaking to an individual this morning and he was claiming his wages were not taxable. Not for the Tax Protestor reasons but as a felon.
Here is the story, the individual received $55,000 wages during the 2006and paid about 17,000.00 in restitution, fines, penalties, etc. in the last 18 months. When speaking to him he mentioned that his wages are not taxable because he is paying so much to the court system for his crimes.
What he has done is on the 1040 to the left of the box he wrote the amount of his wages, $55,000.00 and then in parenthesis he wrote (PRI). I cannot find anything on this topic. All help is greatly appreciated.
Felon's Wages Not Taxable?
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Quixote
- Quatloosian Master of Deception
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The PRI notation tells IRS that the wages were earned while a prisoner and therefore are not earned income for purposes of the earned income credit. See page 48 of the 1040 instructions, step 5. He is mistaken if he believes his wages are not taxable.
"Here is a fundamental question to ask yourself- what is the goal of the income tax scam? I think it is a means to extract wealth from the masses and give it to a parasite class." Skankbeat
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SteveSy
Re: Felon's Wages Not Taxable?
CaptainKickback wrote:So please shut the f**k up and stop whining like a little cell-block b*tch, you are getting the punishment you earned.
You ever thought about anger management classes? Get over it....you don't even know the guy. Take a chill pill, it looks like you need one after all the posts I've seen from you filled with hate. Did some TP come in your IRS office and crap on your sandwich?
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Kimokeo
Income earned through crimes is taxable. So, if the $55k was ill gotten gains, they are taxable.
As for repaying back the ill gotten gains, that makes me think of 'claim of right' since it is repayment of monies taxes were paid on in a previous year.
As for the person who lost money because of the crime, they may not be able to claim a loss until it can be determined how much is not and will not be recovered.
As for repaying back the ill gotten gains, that makes me think of 'claim of right' since it is repayment of monies taxes were paid on in a previous year.
As for the person who lost money because of the crime, they may not be able to claim a loss until it can be determined how much is not and will not be recovered.
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Quixote
- Quatloosian Master of Deception
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No, but the idea is close enough to the truth that his confusion is understandable. Kimokeo mentioned repayment of money received in a previous year. The portion of the $17,000 that the taxpayer paid as restitution for money stolen in a previous year and claimed as income on his return, will not be taxed again this year. (Note that the $17,000 is characterized as restitution, fines, penalties, etc. I'm talking about the restitution portion only.) The double taxation would not be prevented by reducing the amount on line 7 or by notating line 7 in any way. The $17,000 would either be taken as a deduction (whether above the line or on Sch A has never been clear to me) or by a credit calculated in accordance with IRC 1341 et seq.Paying restitution DOES NOT get you a special "pay no taxes on your wages" pass.
"Here is a fundamental question to ask yourself- what is the goal of the income tax scam? I think it is a means to extract wealth from the masses and give it to a parasite class." Skankbeat
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Mr. E
Those that repolied to the situation, thank you for your help and guidance. I will give him the information.
For those that tried ti hi-jack the thread or insert your own aggravations, please relax when you do not understand the situation. The individual fully agrees he committed the crime and deserves the sentence he was given. He is not trying to mooch off the government or blame his situation on someone else. He is only confused/mistaken about his situation regarding his pay.
For those that tried ti hi-jack the thread or insert your own aggravations, please relax when you do not understand the situation. The individual fully agrees he committed the crime and deserves the sentence he was given. He is not trying to mooch off the government or blame his situation on someone else. He is only confused/mistaken about his situation regarding his pay.