I claim my mother as a dependent, her SSA-1099 list her benefits at $17,604, is her gross income considered more than $4,700? I was confused by the scenario 1, Y or N?

[xmasbaby0]

Your mother's SS income does not "count" toward that $4700 limit.  Only OTHER income she receives  --if any-- like pension benefits, investment income, distributions from retirement accounts, etc. "counts" toward that $4700.

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

If you claim your mom, you get the $500 credit for other dependents.

CREDIT FOR OTHER DEPENDENTS

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

[TomK2023]

Her Social Security benefits do not count as income.  So unless she has other income sources (e.g., pension, interest income, etc.) that total more than $4,700, you should answer "No".