"4a. On the 1098-T her box 5 is much smaller than box 1 and was a drop towards tuition only - nothing to file here for either her or us
4b. I do not qualify for AOC or LLC"
This is a long thread, so I might have missed something, but if you cannot claim an Education credit because of your income, and if claiming the student makes no difference on your return, the dependent student may claim the non-refundable portion of the American Opportunity Tax Credit (if all other requirements are met)
This is done by the dependent student selecting "Another taxpayer can claim the student on their tax return" and then also selecting "Another taxpayer will not claim the student in 2022"
(You also do not claim the student)
Enter the 1098-T in her TurboTax program and she should get the non-refundable portion (since you say Box 5 is less than Box 1) and that should lower her tax liability.
This is not advantageous often, but may be in your situation.
See Pub 970 Page 20
@spaceman91
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