Yes, you should be able to enter the 1098-T and related expenses. Just click CONTINUE at the screen "Let's Check This Entry", where it tells you the dependent student can't claim a credit. You should get the full education interview. Enter the 1099-Q before you try to enter the 1098-T, so it knows you have a 529 distribution.
If that doesn't work, reply back, there are workarounds. But, again, the best workaround is to is to just not report the 529 distribution. Why do you think you need to enter the 1098-T?
If she is your dependent, she cannot normally claim a tuition credit. But, if the student actually has a tax liability, there is a provision to allow her to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit. The student must still indicate that she can be claimed as a dependent, on her return. This is worth up to $2500 (AOTC shifts to all non refundable).
Since she is your dependent, you are allowed to claim the tuition credit, even if you did not pay her tuition.
There's even a loop hole available for the parents to claim the credit, if the student is on scholarship and/or has a 529 plan.
