No, she does not have to include it, but no it does not create taxable income if she does. If she elects to include it but does not qualify for any education credits, it will not have any impact on her return, positive or negative.
If she is still your dependent, you would include her Form 1098-T on your return. The same rules apply, it will not create income if you choose to include it, but if your household does not qualify for education credits, it would not benefit you in any way.
@LFields
