Nondependent - for EIC/Dependent Care Only

Hi! I have a question! When going through Turbotax Home & Business 2020 it is telling me that my nephew is a nondependent - for EIC/dependent care only! I understand why I can’t claim him as a dependent…because he provided his own support. So, why is it allowing me to take a credit for him for earned income credit? My only concern: since he did pay for his own support, obviously he has an income so is it still ok?

If so, does he still need to file a tax return since I’m not claiming him as a dependent? He’s under the age of 25 so he doesn’t qualify for earned income credit so it wouldn’t be double dipping!

 

Thanks!