Q. There is no education credits she is eligible for, right?
A. Simple answer: That's right, for 2021. If she had a tax liability, she could claim a non refundable credit, but that would require you to forego the $500 dependent credit.
Q. How do I play it this year 2022? Any advice?
A. You did it near perfectly in 2021. You withdrew the maximum amount without having to pay any tax. Theoretically, you coulda withdrawn another $5000, tax free, by having her declare about $5000 of scholarship as taxable income (it would not have actually been taxed). See my May 6, 2021 reply, above, for details.
