It is very likely grandparents will have taxable income if parents claim credit, depending on amount of qualified expenses paid and amount withdrawn on Q.  As mentioned, you need to fill out the worksheets.  That means you need to have your client get those qualifying expenses.  Also, many schools are still having hissy fit about having to put an amount in Box 1, and are putting everything received in Box 1, even if it isn’t a qualifying expense.  So you need to make sure some expenses, like room and board, aren’t being double counted since they don’t count for the 1098T but do for the Q.