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.
The fact TurboTax treated it, as earned income, when calculating the standard deduction, should give confidence that what we are telling you is correct. The IRS is capable with matching line 8r of schedule 1(identifying it as earned income) to line 12 of form 1040 (the calculated standard deduction).
