$170 is awful darn close (if not spot on) for the self-employment tax that would be paid on $3,500 of self-employment income. If she has more than $400 of self-employment income, then she is required to file a tax return and she "will" pay the self-employment tax. There is no exemption from that.
Your daughter's earnings have no impact on you claiming her has your dependent. As a college student, she could have made a million dollars (literally!) and still qualify to be your dependent.
Can I split the 1098T to show expenses on my return and show scholarship in my daughters return
No. If your daughter claims the education stuff, she will not get one single penny of the education credits because she does not have the *TAXABLE* income to take any credits against. You the parent should claim "ALL" education expenses and scholarships.
The only exception would be if the total of all scholarships, grants and 529 distributions received *IN 2019* exceeded all qualified and allowed education expenses paid *IN 2019*.
