No, you do not need to report the 1098T on your child’s tax return since you are claiming them as your dependent. I’m assuming that Form 1099-Q has your SSN on it. Form 1099-Q only needs to be reported on the tax return if the withdrawal is more than the tuition paid in Box 1 of the 1098-T plus other adjusted qualified educational expenses. In that case, the earnings on the excess distribution would be taxable income. To find out what are qualified educational expenses, please review the Guide to Tax Form 1098-T: Tuition Statement and the IRS link on Qualified Education Expenses.
To determine if you need to report the 1099-Q, add up the tuition paid from the 1098-T in box 1 plus the qualified education expenses and subtract any amount that may have been refunded. If the total is more than the amount in box 1 of the 1099-Q, you do not need to report Form 1099-Q on your tax return. If the total is less than the amount in box 1, some of the earnings in box 2 of the 1099-Q will need to be reported as ordinary income and you will pay an additional 10% penalty tax as well on that amount. TurboTax will ask you questions as you enter the 1099-Q and make the calculations. The gain is not reported, if it was used for qualified education expenses.
For your child files a tax return, make sure the box is checked indicating that someone else will claim them as a dependent.
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