Q. Do I itemize what my 1099-Q distribution was used for I'm the "Non-dependent student expenses" section?
A. Simple answer: yes. That section will present you with boxes to enter the amounts, for Tuition & fees, Books, Room & Board, Special needs, computers & such.
But, why are you even entering the 1099-Q, at all? Your situation is not clear.
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!
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."
Entering the 1099-Q when it is not necessary, risks making errors.
