My daughters grandmother pays her college tuition directly to school. She also receives grants and scholarships. Do i claim her 1098-T and AEO credit since I dont pay?

[llelsey]

No one else claims her as dependant

[AnnaB · Accepted solution]

Yes, if you claim her as a dependent, then you are the person who would be eligible to claim any tax benefits related to her education.  Amounts paid by the student, loans or even her grandmother, are all considered amounts paid (even though not paid by you).  You will have to reduce the tuition amount by the amount of grants and scholarships.  In the event the grants and scholarships exceed tuition or were used for room and board, the excess would be taxable to the student.