Education expenses, 529 and credits

We claim my daughter (19) as a dependent on married filing jointly return. She is the beneficiary and recipient of a 529 plan, of which we are NOT the owners.   She has very small W2 income.
Can I input 1098-T, 1099-Q and her W2 income (if required) on our Joint tax return or does she have to file her own? (Can we answer "Yes" to the question "Did you receive a form 1099-Q" since she is our dependent"?) 

Edited to clarify: 

1.  Qualified expenses were greater than 529 distributions

2.  Other non-qualified expenses were paid out of pocket by us - can these be deducted?