@ViS - I agree with everything you said. You understand it correctly.
I want to point out one technicality, for others reading this post. It does not affect you or your student-dependent: Dependents do not get a full $12,000 ($12,200 for 2019) standard deduction. For 2019, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100 ($1050 prior to 2019) or the sum of $350 plus the individual's earned income (not to exceed the regular standard deduction amount of $12,200). Scholarship income is considered earned income for the purposes of this rule. It is not earned income for other purposes, e.g. EIC or IRA contributions.
