Scholarships are not usually “earned income” for the EIC. On
the other hand, scholarships are not usually reported on a 1099-Misc. Did you
perform some service, like research or teaching, for the scholarship? Is the $
amount in box 7 or box 3 of the 1099-Misc? If box 7, then it is considered
earned income. It is also considered self employment income and subject to self-employment
(social security and Medicare) tax, in addition to income tax. It goes on schedule C, then line 12 of form 1040
If the amount is in box 3 of the 1099-Misc, it goes on line 21 of form 1040 as other income and is not eligible for the EIC
