Q. College tuition was paid with an inherited trust fund, does that qualify for the tuition credit?
A. Yes.
Although the general rule, in taxes, is that you must be the one making the payment, to get the deduction or credit, there is an exception for education. As long as you, your spouse or your dependent is the student, you may use all qualified expenses paid, to claim the education credit. You may not claim expenses paid with tax free money (e.g. scholarships, employer assistance, 529 plans).
