FYI, I found the following very helpful answer to my question in another TurboTax forum post (by Hal_Al:(
(from: Solved: If scholarship is deemed taxable (room and board) is it always unearned income ? (intuit.com... )
"Actually the answer is yes & no.
Scholarships are not earned income for purpose of refundable credits like EIC. It is not earned income for eligibility for an IRA contribution*.
It is earned income for purposes of calculating a student-dependent's Standard deduction.
*Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2."
