My only income is from college scholarships above my qualified expenses. It is reported on my 1098T. Why is turbotax showing that overage as earned vs unearned?

Scholarships are counted as earned income for the application of dependents' standard deduction and the requirement for filing a tax return (over $14,600).

It is unearned income for other purposes.

Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $14,600 filing requirement (2024) and the dependent standard deduction calculation (earned income + $450).  It is not earned income for the kiddie tax and other purposes (e.g. EIC).  For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.

Taxable scholarship goes on line 8r of Schedule 1. This is important. Otherwise TT will not give you the full standard deduction.