Nearly all graduate fellowships are unearned income and no "work" is being performed, even if part of your educational duties include showing up every day and writing papers or TA-ing a class (which "feels" like work, but is not "earned income because it is all still technically "education.")
Examples of earned income would be -- suppose your graduate program requires you to TA one course as part of your training. But you are recruited to TA a second course because of a shortage. Any payment for TA-ing the first course is unearned income but TA-ing the second course may be earned income. (It would not be usual to receive a W-2 for that second course).
The income should be reported in box 3 of the 1099-MISC and there is a checkbox for "fellowship income" on a page of special circumstances after you enter the form.
The scholarship amount is included in your adjusted gross income for purposes of determining your overall qualification for EIC but is not included in earned income for calculation of the EIC amount.
