Yes, in that case you will claim her as a dependent.
You can not add her W-2 to your return. If required to file, she'll need to file her own return and enter that she can be claimed as a dependent.
Yes, that does change things. The education credits are to be claimed by the parents if the student is a dependent, but Box 5 being greater than 1 means that there is no credit available- instead there is taxable income. Your daughter will report the 1098-T on her return and will incur tax on the amount that Box 5 exceeds 1 except to the extent there are other qualified education expenses, as these amounts can be entered to reduce the tax impact- books, supplies, fees, etc.
