An uncle paid my daughter's college tuition but the 1098T belongs to our household. Do we qualify for the American Opportunity credit or deduction?

[JohnW15 · Accepted solution]

Yes, you do.

According to "Expenses  paid  by  others" on page 20 of IRS Publication 970, Tax Benefits for Education,

"Someone  other  than  you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. If you claim the student as a dependent on your tax return, you are considered to have paid the expenses."

[Carl]

If your college daughter qualifies as your dependent and you are claiming her as such, it flat it does not matter who paid what. You get to claim it all. The uncle gets to claim nothing.