Hal_Al
Level 15

Education

Actually the answer is yes & no.

Scholarships are not earned income for purpose of refundable credits like EIC. It is not earned income for eligibility for an IRA contribution*.

It is earned income for purposes of calculating a student-dependent's Standard deduction. 

*Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2.

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