Can a fellowship grant for working count as earned income credit? (I'm not a degree candidate, and I received it from a school for work as a government fellow.)

[username1]

Can a fellowship grant for working count as earned income credit? (I'm not a degree candidate, and I received it from my school (I am an alumna for work as a government fellow.) 

[JohnW15 · Accepted solution]

A fellowship grant can be classified as earned income as it relates to the Earned Income Credit, but it depends on how the income was reported to you.

According to bullet one under “Figuring earned income” on page 18 of IRS Publication 596, Earned Income Credit (EIC), “A scholarship or fellowship grant that wasn't reported to you on a Form W-2 isn't considered earned income for the earned income credit.”

So, if the income was reported to you on a document other than a W-2 – Form 1099-MISC, for example – it’s not counted as earned income.

[username1]

Thank you!