1098-T

You can use the undergraduate tuition to claim the American Opportunity Credit on your taxes. Your child will not be able to claim the graduate school tuition because they will be claimed as a dependent for the tax year 2021. And you are not able to claim the graduate school tuition as a Lifetime Learning credit as the IRS allows only one education credit type per student.

Here is a TurboTax article with more information about Education Credits.

Q.  Can we claim the undergrad portion and have our child claim the grad tuition? Meaning can these be split between 2 tax returns? 

A.  No. One student means just one credit may be claimed.  Because she is your dependent, you are the only one who can claim a credit, based on her education.

But, you are allowed to used both the grad and undergrad tuition payments in calculating your credit, even though you didn't pay both*.  There is a four time limit in claiming the American Opportunity Credit (AOC)**. If you already claimed it four times, in the past, you will be limited to the less generous Lifetime Learning Credit (LLC).

*Although the general rule in taxes is you must be the one making the payment to get the deduction, education is an exception. 

**Although grad school doesn't normally qualify for the AOC,   Grad school in the fall does count if the student finished his undergrad degree in the spring, The technicality is that he had not completed the first four years of post-secondary education as of the beginning of the taxable year.