Yet another scholarship/tax question

[mommdc]

You can reduce the taxable amount of scholarships and grants by the amount that paid for tuition, fees and books.

[BelknapPoint]

I am disputing this concept in my state local and federal tax conversations with state and fed officials because of the scholarship was earned, and mine was, then it should be considered earned income to be used in the EIC calculations.

Good luck with your dispute; you will need it.