Hal_Al
Level 15

Deductions & credits

Yes you can do that (claim the AOTC, allocate some expenses to the 529 distribution and have her declare some scholarship as taxable income). 

When asked if you got a 1098-T, say no, but say yes (check the box) to the question do you qualify for an exception.  That will get you the boxes to enter the expenses.

 

Be forewarned, it gets complicated.