You're making it unnecessarily complicated. Your math is very simple. You get the full $2500 credit. None of her scholarships or 529 distribution are taxable** or reportable. .
40K expenses minus 22K scholarship = 18K. 18K minus 11K paid by 529 plan = $7K eligible for Tuition credit. So, yes, the 1K from savings and the $6K loan counts towards that 4K magic number. Even though the loan was your daughter's, you get to count it on your return, because she is your dependent
Qualified expenses for the tuition credit include tuition, fees, and course materials (books and computers). Qualified expenses for a 529 plan include tuition, fees, course materials plus room and board. The $40K, in box 1 of the 1098-T, does not include room and board.
So yes, again, you should be getting the $2500!!!!!!
** Many taxpayers (or their student dependent) have to pay tax on scholarships or 529 distributions, in order to claim the very generous American Opportunity tax credit (AOTC) (up to $2500). On the other hand, there are "taxpayers" who claim it without paying anything (even though the student must report taxable scholarship, it doesn't actually get taxed until the student has over $12,200 of income).
