Q. My parents are paying for college and I have a 1098 T form that shows my name? Is this unreported income?
A. That is not income and you do not report it as income on your tax return.
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. You may claim the tuition credit based on the tuition and other qualified expenses paid by you or your parents or even grandma.
In addition, you parents do not have to report a gift because it's for education ( gifts over a certain amount usually require the filing of an IRS form, Form 709.
