It's correct if...

It's correct that "scholarship" is NOT subject to taxes. Usually no W-2 form is issued. But "Assistanship" is subject to taxes and the $5000 treaty and you get W-2. The difference is, supposely, scholarship does NOT require you to work in return, while assistanship does. It really depends on how much benefits the school, actually the State, wants to give you. But it's strange that they FILE tax returns!