It depends. Typically, the parent will claim/report *ALL* of the education expenses including the 1098-T if they also qualify to claim the student as their dependent, and actually do claim the student as their dependent. The one exception to that is:
If the total of all scholarships, grants, 529 funds distributions received in the tax year exceeds the total of all qualified education expenses actually paid in the same tax year, then while the parents will still claim the student as their dependent (if they qualify) it is the student that reports the education stuff on their own return. That's because the student (not the parents) will pay taxes on any excess distributions not used for qualified education expenses.
There's all kinds of "nuances" to that statement too. But if one pays attention to the small print, the program handles it just fine.
