Enter in "Field 2", since it gives you the result you want.
TurboTax needs to improve this screen. The "required" computer (the one you basically need to be college student) is considered "books and materials" and qualifies for the American Opportunity Credit (AOC or AOTC). Any other electronics, software, internet qualify for a 529 plan distribution, but not the AOC.
You only get this screen if you have a 529 plan distribution. If you're only claiming an education credit, you get a screen with fewer choices.
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