How is the gross income calculated from w2's? I have my husbands w2, and my 1098-T from being a part-time student. It seems like my grant is being added. is this right?

All income received from all sources for any reason (including scholarships) are gross income.

Scholarships, grants and 529 funds are considered taxable income *INITIALLY*. Their taxability is offset by the qualified education expenses they are used to pay for. So if your scholarships,grants and 529 funds received in 2017, exceed the qualified education expenses paid in the same tax year, the difference is taxable income to you.