All income is taxable (and reportable) unless specifically exempt (like welfare, gifts and VA benefits). But only Earned Income is eligible for the refundable credits, like the EIC and Additional Child Tax credit.
Scholarships and grants that pay for qualified educational expenses are not taxable. Grants that pay living expenses are taxable, but they are not earned income and will not get you any money from the IRS.
Money "earned on the side" is taxable and most likely earned income. The IRS considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income. Enter at "Business Income & Expenses" and TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security) on any profits greater than $400. You report the income from your own records.
