Going forward, please have the student make the withdrawals so that the forms match the student.
The student can enter the 1098-T into the TurboTax program. The program will ask if she received any additional aid not yet listed, in which case she can report the amount of the 529 distribution.
OR
As you suggested, she can simply enter the 1098-T with the amount she paid in Box 1.
If there is nothing in Box 5, it would work either way.
Just to point out a few things to keep in mind:
the distribution can cover expenses not listed on the 1098-T, such as Room and Board which would make the distribution tax-free and could free-up expenses to be used for a credit
Only the EARNINGS portion of a distribution is subject to tax
If there is a credit, in your situation, the student would claim it since she is no longer a dependent HOWEVER-
The American Opportunity Tax Credit may only be used 4 times per student, so the number of times YOU (or anyone else that claimed her) claimed it on her behalf is included as part of HER limit.
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