It only appears that TurboTax (TT) is treating it as wages, when entered as scholarship, under education expenses/deductions and credits, because TT adds the amount to line 1 of form 1040. But, it also includes the notation "SCH". That notation keeps it from being subject to FICA. TT will not generate form 8919 to calculate FICA, as it does when other wages are added to line 1.
