If your daughter has Scholarships that exceed her Tuition reported on her 1098-T she reports this on her return. She will be taxed on the Excess Scholarship Income, but as a dependent this is considered 'Earned Income'. If she does not exceed the $12,950 Earned Income limit (with her W-2) she would not be required to file, but can do so to receive a refund of tax paid.
As a parent, you may still qualify for the American Opportunity Credit if you have other expenses to enter. TurboTax will tell you after entering the 1098-T that the student needs to report the excess scholarship income on their return (which they will do), but if you have other expenses these may qualify you for the AOC.
Here's some detailed info on 1098-T Entries for Dependent and Parent.
@T4Tax
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