Taxable part of scholarship

[M7047]

I understand that I can make part of the students scholarship taxable to maximize the AOC on the parents return. I keep seeing posts that say the student wont have to pay taxes on the scholarship unless its over 12,200.  Putting the 4305.00 taxable part of the scholarship on the w2 worksheet line 4 (scholarship and fellowship grants not reported on w2) is making the standard deduction  only 4655.00. Am I doing something wrong? Thanks. 

[Margaret CPA in OH]

For dependents children the standard deduction is the greater of $1100 or the amount of earned income plus $350 (not to exceed $12,200).  Looks correct to me.  As that is the standard deduction, it's deducted, not taxed.

[M7047]

Thanks