Q. Must I even enter these forms on her return?
A. No. They are both only informational. If you know the 1099-Q is not taxable. Don't enter it. Same for the 1098-T; if you know you're not eligible for a credit and/or none of the scholarship is taxable, don't enter it.
But, everybody has food and shelter (room and board). For room and board to be a qualified 529 expense, the student must be half time or more. You may count the lower of your actual expenses or the school's "allowance for cost of attendance" for students living at home.
