Can I choose to not claim college student as dependent because my income into high for tuition credit and then she can claim it herself

The key is somebody can claim her, meaning that she did not provide over half of her support. Thereby, ineligible to claim the expenses regardless of who actually claims her.

Q. Can I choose to not claim college student as dependent because my income into high for tuition credit and then she can claim it herself?

A. Simple answer: no.

Q. She tried to amend her return to say someone else could claim her as a dependent but they are not actually going to claim her but TurboTax said she still didn't qualify for the tuition tax credit even though she has a 1098-T. Is that correct?

A.  Probably

While technically there is a provision that allows your daughter to claim a tuition credit, from a practical matter it seldom works out.  A student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if she supports herself by working . She cannot be supporting herself on student loans & grants and 529 plans and parental support.  .  

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit.  The student must still indicate that she can be claimed as a dependent, on her return. This is worth up to $2500 (AOTC shifts to all non refundable)