A fellowship grant can be classified as earned income
as it relates to the Earned Income Credit, but it depends on how the income was
reported to you.
According to bullet one under “Figuring earned income” on
page 18 of IRS Publication
596, Earned Income Credit (EIC), “A scholarship or fellowship grant that wasn't
reported to you on a Form W-2 isn't considered earned income for the earned
income credit.”
So, if the income was reported to you on a document other
than a W-2 – Form 1099-MISC, for example – it’s not counted as earned income.
