Q. Did I enter the $2450 in the right place?
A. Yes, the $2450 ended up in line 1 of the 1040 with a SCH description.
Q. Did I end up with the proper result re Form 8615?
A. Yes. The result is correct. But, you are correct that scholarship income is unearned income for the kiddie tax. But, it is treated as "earned income" for purposes of the calculation of a dependent's standard deduction (his earned income + $350). So, his scholarship is wiped out by the standard deduction and never becomes taxable income.
