Q. So if I put it on her hers too will it affect anything on my return?
A. No, as you already said you were unable to claim the tuition credit.
Q. Do I put it on her tax return since in box 5 her Grant was $3098.00 and in box 1 her payments received for qualified was $2542.30?
A. She technically has $556 of taxable scholarship (unless she has other expenses, like books that she can offset), if she otherwise ("working college student") has to file a tax return.
There are possible other issues for you. What is her age and was she a full time student and how much wages did she earn (affects whether you can claim her as a dependent)? You actually may be able to claim a tuition credit.
