You may want to choose to try to remove her as a dependent and let her file with claiming she can be claimed as a dependent on another tax return but you don't claim her. Then she qualifies to get the tax credit to the extent of her tax liability (normally, this works well when student is subject to kiddie taxes or has high income). The loss of the dependent though must be weighed. Do remember if you do remove her as a dependent on your federal return that she may be allowed to be added back for state purposes (states do not necesarilly follow the fed and she was eligible you just chose not to claim her). File the 1098T on her return and see if there is any savings with you not claiming her.
Otherwise, if you claim her, you must report the 1098T on your return as it's reported on whomever claims the dependent exemption.
****The 1099Q is not required to be reported anywhere. If the distribution doesn’t exceed the amount of the student's qualifying expenses, then you don't have to report any of the distribution as income on your tax return. If the distribution exceeds these expenses, then you must report the earnings on the excess as "other income" on your tax return. When you pay a student’s school expenses with these funds, you cannot claim a tuition deduction or either of the educational tax credits for the same expense. https://turbotax.intuit.com/tax-tips/college-and-education/what-is-irs-form-1099-q/L7MAdcKz5
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