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Education
Yes, you may claim a very generous tuition credit, because she is your dependent. The credit is worth up to $2500 on as little as $4000 of payments. Since 10,000 (box 1) was paid and only $5000 was from scholarships, you qualify.
Rather than jumping through the hoops to make the numbers match, just enter the 1098-T, as is; since you know you qualify.
Even though she got cash back, none of her scholarships are taxable, because the net expenses, even after you claim a credit, exceed scholarships received (10,000 - 4000 = 6000, which is more than the $5000 scholarships).
If the $5000 scholarships were in addition to the $3450 shown in box 5, the answer is a little different. You can still claim the FULL credit, but she will need to report a little scholarship income, if she even needs to file a return.