You can’t claim education credit unless you claim her as a dependent. You have to determine if she CAN be claimed by you since if that is true she must check the box on her return saying that someone else can claim her. In that case, if you don’t claim her she can claim the education credit except for the refundable portion. If, in fact, she doesn’t qualify to be your dependent she can claim both portions of the credit. It doesn’t matter who actually paid the expenses in either case.
