I just noticed your comment "My other issue is we paid the Spring 2023 semester with her 529 as well and that amount is included on this 1099Q.''
The answer is probably still good, since it comes out with you getting the AOTC and your student not having to pay any tax, and none of the 1099-Q being taxable.
But you should be aware of the consequences of mismatched years with QEE and 529 distributions. Try to avoid this in the future. See:
https://ttlc.intuit.com/community/college-education/discussion/529-provider-distributed-funds-on-12-...
https://ttlc.intuit.com/community/college-education/discussion/i-took-a-529-distribution-in-2021-for...
https://www.savingforcollege.com/article/timing-of-529-plan-distributions-must-match-qualified-expen...
