Do not enter under income. Instead, in TurboTax (TT), enter at:
Federal Taxes Tab
Deductions & Credits
-Scroll down to:
--Education
--ESA and 529 Qualified Tuition Programs (1099-Q)
For 529 plans, there is an “owner” (usually the parent), and a “beneficiary”
(usually the student dependent). 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. The recipient's name & SS# will
be on the 1099-Q.