Lifetime learning credit

The income limit for the Lifetime Learning Credit is

$90,000 or $180,000 Married Filing Jointly.

If education expenses are allocated to a 529 distribution, they would not also be allocated to a credit.

Some other details  that would need to be known include the numbers in Box 1 and Box 5 of the 1098-T.

Are you claiming the student as a dependent on your return?

To whom was the 1099-Q issued, you or the student. 

She cannot be your dependent for 2023.

She cannot be a "Qualifying Child" because she is not a full time student.

She cannot be a "Qualifying Relative " because her income is more than $4700.

There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit. They are interrelated but the rules are different for each.

The support test is different for each type. The support test, for a QC, is only that the child didn't provide more than half his own support. The support test for a Qualifying Relative is that the taxpayer provided more than half the relative's support.

See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Return/INF12139.html

You cannot claim a Tuition Credit because she is not your dependent. She will be able to claim the credit, on her return. The LLC is a non-refundable credit, so it can only be used to reduce her tax liability (no refund). 

But the 1099-Q is a separate issue. 

For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” ( the student ). The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". The distribution will be reported on IRS form 1099-Q. 
The 1099-Q gets reported on the recipient's return, if it even needs to be reported (usually it doesn't).

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

References:

1. On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 
2. IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”.