Turbotax is calculating unearned income as earned income.

[clayton-m-davis]

I have unemployment compensation and excess scholarship money that is taxable. Turbotax is adding these amounts to earned income and adjusting the EITC amount based on the unearned income. Anyone else having this issue?

[Rachel_W · Accepted solution]

More than just your Earned Income goes into the calculation of the Earned Income Credit.  

Non-earned income such as scholarships, unemployment compensation and investment income that are included in your Adjusted Gross Income (AGI) also factor into the calculation.  

Click here to view the IRS calculation worksheet for the EIC: 2018 EIC Worksheet.

Please comment below if you need further clarification.

[SweetieJean]

As indicated, EIC is calculated two ways: (1) based on earned income, and (2) based on AGI.  You then get the lesser of the two.