First off, I recognize that I am not paying any of you to act as a licensed tax professional for me, so I will take your tax advice as just that, advice.
The university I attend has financial-need-based assistance it provides specifically for students with children. I received some of this assistance last year. My question is, does this money count as earned income for the purposes of the Earned Income Tax Credit?
Possibly relevant information:
- Social security, medicare, and state withholdings were all taken from this assistance money.
- This money is appearing as box 1 (and 3 and 5) income on my W-2.
- To qualify for the assistance money, I have to be a graduate student and making below a certain amount (there is a graduated phase out) and have to have children below the age of 6.
- Once qualified for assistance money, the money is then paid out on a reimbursement basis, reimbursing for child-related housing, medical insurance, and child care expenses up to a certain maximum each month (determined as total assistance amount divided by 12).
