The program likes to take out $10,000 for the Learning Lifetime Credit first. That causes you to have $10,000 of income to get the credit. Let me ask you to double check that you have any taxable income from the 529. If the 1099-Q was used exclusively for qualified expenses, it should not be entered. Tuck the 1099-Q into your tax folder. IRS Publication 970, Tax Benefits for Education states that If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you should not enter the form.
If you do have taxable income and the Q needs to be entered, delete the 2 forms- 1098-T and 1099-Q then try entering the forms in the reverse order.
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