I typed the wrong line # the first time (it's since been corrected). The non refundable portion of the AOTC is on line 20, not line 17.
If you are getting $1000 (the maximum AOTC) on line 29, then you will get $1500 on line 20* (not $1200). It also means you are using $4000 of tuition to claim the credit, not $2000. That means she needs to report $6141, not $4141, as income.
*Note line 20 may include other credits from Schedule 3 (but it's a little unusual).
