You should enter all her documents relating to education (1098-T and 1099-Q) into your TurboTax program. Your program will do the math, issue a credit (if applicable) on your return, and tell you if and how much the student needs to claim as taxable income.
If your daughter needs to claim any income, do not enter the 1098-T nor the 1098-Q onto her return a second time.
If she needs to claim scholarship income, enter the amount she needs to claim (only) in the education section as a scholarship (NOT using the 1098-T screen, just the amount as a scholarship).
If she needs to claim any of the distribution, that amount is entered as "Other Income" on her return.
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