Dependent got scholarships exceeding educational expenses - how to pay tax on that scholarship income

College student child is my dependent.

Got 1098T and it shows her tuition and that her scholarships exceed what was paid in tuition.

At one point, Turbo Tax told me that the child had to file a tax return. Now it is not saying that. It's only telling me that we don't qualify for any education credit.

 

What do I do? How do I know if she needs to file a return and how to do that?

 

She got $6,588.67 over tuition.