Q. Does this count as "earned income" for the question "Did you provide over half of your own support with earned income during 2025?"
A. No.
Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $15,750 filing requirement (2025) and the dependent standard deduction calculation (earned income + $450). It is not earned income for purposes of the support question, 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.
Taxable scholarship goes on line 8r of Schedule 1, from which TT treats it as hybrid income.
If part of the reason, you are asking that question is to see if you can claim her as a dependent:
As @DaveF1006 said, Scholarships are ignored in the support calculation.
In addition, if you are the owner of the 529 plan, the money that was withdrawn is considered as support provided by you, not her, in the support calculation.
