The 1099-Q indicates me as the recipient but the funds were used for my son's education expenses. My taxes increase even though it was used for qualified expenses.

[KrisD · Accepted solution]

When you enter the 1099-Q, the program asks if the funds were used for the education expenses for someone not claimed on your return. You would answer "Yes" if the student is not listed as a dependent on your return. 

If the student IS your dependent and listed on your return, be sure to enter the 1098-T.

It might make things easier if funds are transferred to the school in the future. That way the 1099-Q is issued to the student. 

[shmulkie76]

Yes, you are correct.  I also needed to offset the amount by indicating the qualified educational expenses which then eliminated the tax liability.  That section to be completed was not readily evident until I had hit a few "Done" buttons.  Thanks for your help.

[KrisD]

The education section is complicated. Thank you for using TurboTax.