Deductions & credits

You are correct.

You don't need to report the 1099Q but you should hang onto it in case I need to verify the education expenses were qualified (along with a copy of the tuition bill).  Your daughter doesn't have to file a tax return because $3,000 is below the required amount of $12,400 for a single filer.  And you can take advantage of the Lifetime Learning or American Opportunity Education credits.  

 

Here is a TurboTax article about the 1099-Q and another article about education credits.