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Thank you so much for your response. My daughter is 21 and a full time student. We did not add any of her income to ours to change our bracket.  The thing I find most confusing is that TT instantly reduced our refund by $1526 when I said she was pursuing a bachelor's degree (1st question they ask)

 Then it did give us the $2500 AOT refund after asking the other qualifying questions, however after the $1526 was deducted and then $2500 added, it was only about $1000 refund instead of $2500.  Our joint filing income is well under the maximum amount allowed.