@Steve429 said "I feel like using the full 1098-T amounts is wrong especially considering they will need to claim this on their returns".
No. They will not claim any tuition on their returns. Since they are your dependents, you are the only one that can claim a tuition credit for their education. You may claim both what you paid and what they paid. Typically, box 1 of the 1098-T (total tuition paid) minus box 5 (tax free scholarship) equals the amount that can be used for the tuition credit (there is no "deduction", only a credit). So, using the full 1098-T amounts is the correct way.
