We do not want to claim our child as a dependent even though they technically qualify because they get a better return and that outweighs our deduction . Is that ok?

Yes and no, but mostly no.

You are not required to claim your dependent*. But, there is a rule that says IF somebody else CAN claim him as a dependent, he is not allowed to claim himself. If he has sufficient income (usually more than $12,400), he can & should still file taxes. In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.  TT will check that box on form 1040.

Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

With the tax law change, effective 2018, most students will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased. However, you only qualify for an education credit or deduction, if you are not a dependent.  However, for 2020, there is the issue of the stimulus/rebate credit.  

Under the CARES Act, if a person is claimed, or qualify to be claimed, as a dependent on someone else’s 2019 return he cannot receive a stimulus check, in 2020.   If he qualified as a dependent for 2019, but will not be for 2020, he will most likely get it in 2021, when he files a 2020 tax return.

Note that the requirement is not just whether you are actually claimed as a dependent, it's whether you qualify to be claimed as a dependent. 

*There are very few cases where the parent would want to forego the $500 other dependent credit to allow the student to claim something.  One case is the tuition credit.  But even then , the student would not, usually, be allowed the refundable portion of that credit