Fellowship/ Scholarship income can be tax free but often isn't. See Topic no. 421, Scholarships, fellowship grants, and other to determine if your child's is taxable. Your dependent deduction is correct - if it is taxable income.
Scholarship income is a hybrid of earned income and unearned income.
- Earned income for purposes of the filing requirement
- Earned income for the dependent standard deduction - scholarship + $450
- Unearned income for purposes of the kiddie tax, see What is the Kiddie Tax?
- @DC05
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
