What is the Law Enforcement Reward Deduction?
If you reported an amount you received as a reward as other income on your federal tax return, you may be eligible for this deduction.
You can deduct the lesser of the reward amount or $1,000 if all of the following apply:
You can deduct the lesser of the reward amount or $1,000 if all of the following apply:
- You received a reward for providing information to a law enforcement official or agency.
- The information assisted in the arrest, indictment, or the filing of charges against a person.
- You are not compensated for investigating crimes, the person convicted of the crime, or the victim of the crime.
