@catkik said "reported this amount (taxable scholarship) in the Income section Less Common Income"
That usually reports it as unearned income on line 8z of Schedule 1. That will give the student a smaller standard deduction. You want it on line 8r of schedule 1 (taxable scholarship). Verify where TurboTax put it and the amount and reply back
Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $13,850 filing requirement and the dependent standard deduction calculation (earned income + $400). It is not earned income for the kiddie tax and other purposes (e.g. EIC).
