The thing I'm still fuzzy on is when you mention "shifting" money away from the 529 to get more of the AOTC. As far as I can tell, her scholarships are restricted to tuition, and the 1099-Q is in her name and SS# (paid directly to the school from the 529).
Q. Is it even possible to shift things around given those circumstances?
A. Yes and No.
Since the scholarship is restricted to tuition, you cannot switch that part of the tuition anywhere else (not to the AOTC and not to 529).
The fact that the 1099-Q is in her name does not prevent you from shifting expenses from the 529, on her return, to the AOTC, on your return.
Q. What are the steps I would need to take?
A. I need to know the numbers.
