Overfunded 529 b/c of Scholarship - Help needed for next steps

[politeperson]

@sursumcorda

But scholarships above tuition and books are taxable and have been for a long time. (I paid in the 1990s) They are considered earned income in IRS publication 929 in the definitions section.
** Important- I am not a tax person at all.

Just noting to avoid confusion: scholarships are NOT considered earned income when it comes to the kiddie tax.