साथी, कुरा खुलस्थ सँग राख्नु पर्‍यो नि। एती लामा कुराकानी गर्नै पर्दैन थियो। You should mention that in your first posting and our thought came true. Now you can focus on state only. Usually, any scholarship minus tuition you paid to your school should be your gross income. Did you get any 1099 for scholarship??? But they gave you cash and you paid to your school or the gross income shown in your w-2 form is the total scholarship amount awarded? We need to know that too. 1) If the gross income is your total scholarship awarded and they deducted the tuition directly, then you can claim only the cash you had received. But in your case it seems the university gave you cash, you paid by credit cards, in that case your gross income will be equal to the scholarship awarded and have to treat as your gross income. 2) While filing State tax, you can file as a resident of that state. Let run the data and let you know. What is your filing Status? Are you filing, Single, married filing jointly and with children? Need to know too.