Yes, thank you! I do see that. Remarkably, it does seem to say that unearned income should be treated like earned income for the purpose of determining the deduction. As in, "How much earned income do you have if you consider unearned income to be earned income."
In any other context, Excess Scholarship is considered unearned income.
The linguist might find that to be obtuse, but standard fare for the IRS.
I certainly believe that it is worth pursuing.
