@inpatel.austin
your daugher is still your dependent since you are providing more than 50% of her support and she earns less than $5200. You can prove it to yourself at this website. Depending on your income, you would be eligible for a $500 tax credit ("other dependent credit").
https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent
Since she CAN be claimed as a dependent (whether you claim her or not is immateral), she is not eligible for the Lifetime learning credit.
On form 1098-T:
if the expenses in Box 1 exceed the scholarship in box 5, that would be the basis of any educational tax credits. in this case, the form does nothing as I suspect your income exceeds $180,000 from your statement. Put it in a draw!
If box 5 exceeds Box 1, that net is taxable to your daughter.
