It seems incredibly unfair that the government forces you to miss work, pays you a measly $15 a day, and then expects you to pay taxes on that $15. But is that actually how it works?
Let's get right to it: according to the IRS, jury duty pay is considered taxable income. You are required to report it on your federal tax return.
The IRS views this money as compensation for services rendered, even though it's a mandatory civic duty. It doesn't matter if you made $15 or $1,500 over the course of a long trial—the federal government wants its cut.
Here is the silver lining: while the daily 'attendance fee' is taxable, mileage and parking reimbursements are not taxable. The IRS views travel reimbursements as a return of your own money, not as income. When the court issues your check, the taxable portion and the non-taxable travel portion should be separated in their records.
If your company continues to pay your full salary during jury duty, they usually require you to hand over your court stipend to them. If you do this, you can deduct the amount you surrendered to your employer as an adjustment to income on your 1040, so you aren't taxed twice.
Yes, your daily jury stipend is taxable federal income. However, any money paid specifically for mileage or parking is not taxable.