Can my son contribute to a Roth IRA based on his taxable scholarship income?

[Kanepete]

My son has over $7,000 in taxable scholarship income.  The income is being reported on line 1 on his 1040 (not reported on a W-2) on the dotted line next to line 1 with the notation SCH $7,000 (as per IRS pub 970 directions).  The million dollar question is, can my son contribute to a ROTH IRA based on these taxable scholarships?  His W-2 income from working is only about $700.

We have researched this topic and cannot come to a sure answer.  Some of the research issues are that the IRS seems to now like to provide updated guidance on graduate students with fellowships.  My son is not a grad student and does not have a fellowship.  He just received much more scholarship money then the cost of his qualified educational expenses.

[ThomasM125]

The IRA contribution is allowed without penalty if you report the scholarship income on line 1 of your form 1040, which is how it will be treated if you enter it in TurboTax using the form 1098-T entry screens.

[Kanepete]

Thank you for your quick reply.  It is just a twist on the whole, you need earned income to contribute to an IRA and earned income is reported on a W-2.  In this case, we do not have a W-2 representing his taxable scholarship income.