A scholarship COULD be contributed, but as stated earlier, it needs to be earned income and reported on a W-2. Some Fellowship Grants are reported on a W-2 and that would qualify.
The scholarship listed in Box 5 on a 1098-T can be used towards your Earned Income Credit if you are otherwise eligible, but excess in Box 5 on your 1098-T can not be used to make a deductible IRA contribution.
Excess (taxable) scholarship income is funny, sometimes it counts as earned Income and other times it doesn't.
For an IRA contribution, it doesn't.
"Yes it states that taxable non-tuition fellowship and stipend payments qualify along with wages, salaries, self-employment income."
Those Fellowships and Stipends are reported on a W-2.
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