It's a little more complicated than that. Or, another way to say it is "it doesn't work like that". *
$9013 + 6950 = $15, 963 can be considered earned income for purposes of the student-dependent's standard deduction. So he gets the full $15, 750 standard deduction, not $16,413 (the standard deduction is earned income + $450, but no more than the regular standard deduction of $15,750).
For purposes of the kiddie tax, the full $6950 + 187 = $7113 is considered unearned income and is entered on line 1 of form 8615 and income subject to the kiddie tax is calculated, using the $2700 deduction ($1350 + 1350). But then the taxable income, from form 1040 (after the $15,750 standard deduction) is entered. The lower of the two numbers is actually subject to the kiddie tax. Only $400 will be taxed at the parent's tax rate ($16,150 - 15,750 = $400).
Q. With no taxable income, no kiddie tax is due. TT files Form 8615 to show that, right?
A. Yes, if the student files. But, in most cases they don't even need to file, with no taxable income. Technically the filing requirement is total income of more than $15,750. Taxable scholarship is considered earned income for purposes of the $15,750 filing requirement (as well as for the standard deduction calculation).
*Technically, taxable scholarship does not become unearned income at some $ limit. It is earned or unearned income depending on what you're doing with it, on your tax return. It is earned income for purposes of the $15,750 filing requirement (2025) and the dependent standard deduction calculation (earned income + $450). It is not earned income for the kiddie tax and other purposes (e.g. EIC). For grad students and post grad fellows (but not undergrads), scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.
