You do not enter the 1098-T on your daughter's return. The 1098-T, and all other education expenses and scholarships for your daughter go on your tax return.
For your daughter's return, in the Education section you want to end up with the net amount the scholarships exceed her qualified education expenses, including any amount used for room and board. This net amount will be included on line 1 of your daughter's Form 1040 with her W-2 wages. There will be an SCH designation with the dollar amount of taxed scholarships next to the line 1 amount.
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