I'm paying my grandchild's college tutuion and expenses. Can I deduct those costs?

[Hal_Al]

No. There is no longer an actual tuition deduction, but there is a tax credit. Only the parson who claims the student as a dependent can claim the tuition credit (including the student herself if she is not a dependent, with some limitations).

However the person who does claim the student, as a dependent (usually the parent), may claim the money you paid when calculating the credit. 

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.

[CesarJ]

You can't directly deduct your grandchild's college tuition and expenses as a personal deduction. However, these qualified education expenses may allow the grandchild or the parent to claim education tax credits such as the American Opportunity Tax Credit or the Lifetime Learning Credit, depending on who claims the grandchild as a dependent on their tax return.

Additionally, if you pay the tuition directly to the educational institution, these payments aren't subject to gift tax.

For claiming education credits, the key is who claims the grandchild as a dependent. If you don't claim them, the grandchild or their parents may be eligible to claim credits based on those expenses.

If your grandchild is your dependent, you potentially can claim education-related tax credits like the American Opportunity Tax Credit or the Lifetime Learning Credit for qualified tuition and expenses you pay.

These credits apply to higher education expenses paid for a dependent student listed on your tax return. The American Opportunity Credit offers up to $2,500 per student, while the Lifetime Learning Credit can reduce taxes up to $2,000.