If the tuition and expenses entered are greater than the distribution from the 1099 Q, the distribution will not be taxable. Make sure you have your education expenses included along with the 1099 Q
Report the 1099 Q in Education expenses.
Select Federal Taxes
Select Deductions and Credits
Select Show More at Education
Select Start or Revisit at ESA and 529 qualified tuition programs (Form 1099-Q)
If the beneficiary of the 1099 Q is someone you are claiming as a dependent, select their name from the list of people in your tax return. Then you will enter her 1098 T information in the tab - Expenses and Scholarships (Form 1098-T).
To enter a 1098 T in Turbo Tax:
Select Federal Taxes
Select Deductions and Credits
Select Show More at Education
Select Start or Revisit at Expenses and Scholarships (Form 1098T)
If the beneficiary of the 1099 Q is not a dependent in your tax return, indicate that the payment was for "A beneficiary that's not a dependent on this return" - see screenshot below.
You will be prompted to enter the beneficiary name. Then, you will be directed to a screen where you can enter your beneficiary's education expenses. See screenshot below.