"Scholarship income is taxed as earned income" is not quite correct. For purposes of the "kiddie tax" (form 8615) , it is unearned income. So, you will get the choice of trust rates or parental rates. But, for purposes of calculating the standard deduction, scholarship income IS treated as earned income. The effect being that scholarship income is not taxed unless you have over $12,200 of earned income/scholarship.
