Actually I put the $5K as earned for the dependent standard deduction. Other than that, I took your word that it was otherwise unearned, i.e. that it had been used to pay tuition and related qualified educational expenses that let the scholarship be otherwise tax free. (Had it been used otherwise, the result would have been the same but the entries on the 1040 and schedules would have been different.)
With the state, do be absolutely sure that the state doesn't have separate who-must-file rules for dependents that could require filing with just that $5K.
