Well, the child is not dependent anymore, got more than $5,200 for the internship. So I believe I cannot put their 1098-T on my return. I should still be able to claim 1099-Q distribution as tax free, since I used this money to pay for their qualified expenses (regardless of dependency status the child is still the beneficiary). The child will not be able to claim educational credit though (so 1098-T does not go on their return either), but this is OK, since I am getting tax relieve, which should be bigger.
Am I correct?
