To claim the AOTC when her scholarships are greater than her education expenses, you can claim enough of the tuition and fees to claim the AOTC, and then on her return you will enter the scholarship income and the rest of the tuition and fees.
The AOTC is worth $2,500. It is calculated by claiming 100% of the first $2,000 and then 25% of the rest up to another $500. So $4,000 in expenses entered on your return would get you the full amount. Since she had total expenses of about $7,500, on her return she would enter the full scholarship amount and the remaining expenses, minus the $4,000 you entered on your return on her return. She may end up with taxable income for this year depending on how much other income she has.
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