Revised my reply, above, to add this paragraph:
The Lifetime Learning Credit (LLC) is a non-refundable credit. That is, it can only be used to reduce an actual tax liability. So, it's unlikely that full time students will need all their tuition to claim enough credit to reduce their tax to zero. So, you may be able to split the box 1 (of the 1098-T) tuition amount between you. Example: student has $10,000 in box 1 of the 1098-T, box 5 is blank. Student had a summer job and has a tax liability of $200. The LLC is 20% of tuition paid. The student only needs to claim $1000 of expenses to wipe out his tax. The other $9000 can be used by the parent toward the 529 distribution.
