Since you're not eligible for a tax credit, the 1098-T does not go on the parent's return. It doe go on the student's return to determine the taxable portion of the 1099-Q. That tax can be reduced by claiming room and board, even if the student lived at home (use the school's "allowance for attendance", which is usually available at the school's web site.
I take "went to City college with scholarships paid, so she didn't pay any tuition" to mean the the scholarship was restricted to tuition; so declaring some of the scholarship taxable is not an option*. This is the usual technique for shifting expenses to the 529 distribution (or tuition credit).
Boxes 4 and 6 of the 1098-T are usually blank. Whether those numbers affect the 2023 tax return would require more explanation of what adjustments were made. We can probably ignore them.
* Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $13,850 filing requirement and the dependent standard deduction calculation (earned income + $400). It is not earned income for the kiddie tax and other purposes (e.g. EIC).
