529 plan withdrawal due to scholarships

Regarding reporting a 529 plan withdrawal on next year's tax return, I have a situation where my daughter has received scholarships exceeding the remaining funds in her 529 account. My understanding is that the withdrawal of the leftover funds should be exempt from the 10% penalty, as long as the total scholarships received equals or exceeds the withdrawal amount.

 

I'd like clarification on two points:

 

  1. Can you confirm that neither the law nor the TurboTax software requires that the penalty-free withdrawal must occur in the same year(s) the scholarship was received? I see nothing in Pub 970 that specifies that.
  2. Can the TurboTax software guide me through reporting this withdrawal on next year's tax return? Are there any specific documents or forms I'll need to submit?

Thanks!