Wrongly Convicted Won't Pay Compensation Tax

By: Associated Press
By: Associated Press

The wrongly convicted no longer will have to pay federal taxes on compensation money paid to them by the states that locked them up.

Cory Session, policy director at the Innocence Project of Texas, said Monday that the Internal Revenue Service ruling will affect ex-inmates from the 32 states that compensate the wrongly convicted.

A group of wrongly convicted Texas inmates lobbied the IRS, which in some cases had collected up to a third of the compensation money in taxes. The lobbying effort was led by Texas lawyer Kevin Glasheen, who persuaded the Texas Legislature last year to provide the nation's most generous compensation package.

Texas pays the wrongly convicted $80,000 for each year of incarceration, plus a lifetime $80,000 annuity that varies based on life expectancy and other factors.

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