We did not pay for our son's tuition in 2016. His grandparents paid out of a college fund they had set up. We only paid for some of the textbooks.

[stlinsea]

Do we just not complete the portion for the 1098-T?

[MichaelL1 · Accepted solution]

The parents may claim the tuition paid by the grandparent.  

You as parent's report the 1098-T on your return. 

Only the person claiming the student as a dependent can claim the 1098-T on their return.