College students who also work and are raising children may be eligible to claim the EITC. Students between ages 25 and 64 who are not raising children and who work may also be eligible. Parents of full-time students under age 24 may also be able to claim the EITC.
• Non-taxable scholarships and grants are not considered income in determining eligibility for the EITC; taxable grants and scholarships also are not considered “earned income,” but are included in determining “adjusted gross income,” which may affect eligibility for the EITC.
• An EITC refund is counted as family income in determining financial aid eligibility. However, for many low-income students who work, or their parents, the EITC will have no effect on financial aid amounts or eligibility. Adding the EITC amount to other income often will not cause them to reach the threshold of income at which a contribution to the costs of education is required of a student or family.
For more information, contact your college’s financial aid office. For information on which scholarships and grants are taxable or non-taxable, call the IRS at 1-800-829-1040.
