1098-T Son's College Tution Paid By Trust

[gguerrero61]

We currently claim our 19 year old son as a dependent. He's away in college and the tuition is paid by proceeds from a trust set up by his grandmother. He received a 1098-T under his social security number. His earned income for 2023 was $5000 from a part-time job so he will not be filing his own taxes this year. Do we report this 1098-T under our taxes? 

[KrisD15]

Yes.

Payments by the trust are treated as if the payments were gifts to the student and the student paid the school. 

Since the student is your dependent, you enter the 1098-T for an education credit. 

[Hal_Al]

Q.  Do we report this 1098-T  and claim the tuition credit  under our taxes?

A. Yes. 

Although the general rule, in taxes, is that you must be the one making the payment, to get the deduction or credit, there is an exception for education. It doesn't matter whose money paid the tuition. You get to claim the credit, because the student is your dependent and qualifying expenses (tuition) were paid.