You should have received a 1098-T from your daughter's college. Then, if you claim your daughter as a dependent on your income tax return, you should enter the 1098-T so that you receive any education credit that would be available to you. If Box 5 (Scholarships/Grants) is greater in its amount compared to Box 1 (Payments Received) or Box 2 (Amounts Billed), your daughter would also include the 1098-T on her own tax return. The reason for this is the IRS views any excess of Box 5 over Box 1 or Box 2 as taxable income to the student.
