AL is one of the the few states where you define the income to be taxed in AL. Most states begin with the federal income. When you go through AL, you should be able to mark the money as not taxable. The program will ask about your different incomes. It comes to a section that says Federal Income not Taxed by AL, that would be a last resort to mark the income as not taxable and back it out.
Please review your AL return and make sure it is taxing the scholarship. AL does not tax scholarships that are not taxable to the federal. See How do I preview my TurboTax Online return before filing?
@ultrawideman
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
