DC05
Level 2

Education

Thanks for the response! If the fellowship money is considered earned income and can be included in the standard deduction, it reduced her tax liabilities and she doesn't own any taxes. But some searches on the internet (including chatgpt) says the fellowship money is not considered earned income. I just want to make sure her first tax return doesn't trigger any questions from IRS. I am wondering what are the circumstances where it is considered earned income vs unearned income.