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I would raise my fees due to the additional complications. Just because you can do it doesn't mean it's a good idea.

You are almost certainly asking for a letter of explaination from Wisconsin as Federal pro forma is attached to WI return. I have clients already getting these for various reasons. Also, be sure to be aware that some credits and exclusions are not available to married individuals filing separate returns. Otherwise, I can't help you. I have never been aware of this type of situation. I cannot find any ruling that says you cannot file this way.

ya I am realizing I do not nowhere charge enough for the calculations I do for my clients! D/WI

I used to file MFS Delaware for couples where one worked in Maryland and one worked in Delaware, but then I realized that the total state tax never changed, so I stopped. It was also quite a pain to do in ATX.

I've never seen a scholarship paid directly to the student rather than the college. If the kid could use it for anything, then I don't see how it's a scholarship just because the memo said it is. I also don't see how it's earned income. Sounds to me like prizes and awards subject to kiddie tax.