See @DoninGA to confirm she is a dependent (she probably is)
a) your income goes on your tax return and her income goes on her tax return
b) the 1098T form goes on YOUR tax return (as long as Box 1 exceeds Box 5) - that will reflect the qualified tuition and related fees. It should get you the AOTC credit by doing it this way.
c) if the $5750 is her only income and there were no tax withholdings, she doesn't need to file. If there were withholdings, she'll need to file to get the money back.
