scholarship income and eic?

[Super Mom]

Just want to be sure as I'm reading conflicting information, in one place I read that scholarships are salaries and wages, but it seems this is subtracted from w-2 earnings to calculate EIC. Just want to be sure, as this client ONLY has scholarship income and has a child. That would not qualify her for EIC, correct?

[TaxGuyBill]

It does not qualify for EIC.

For purposes of the Standard Deduction, yes, taxable scholarship are considered "earned income".

However, for most (or all) other purposes, it is not "earned income", and it is definitely not "wages, salaries, tips, and other employee compensation ... earnings from self-employment" which is required for EIC.

[Super Mom]

It does not qualify for EIC.

For purposes of the Standard Deduction, yes, taxable scholarship are considered "earned income".

However, for most (or all) other purposes, it is not "earned income", and it is definitely not "wages, salaries, tips, and other employee compensation ... earnings from self-employment" which is required for EIC.

Thanks for your help! Have a great day!