OP has a point here. As recently as last year, when entering a 1099-Q, TurboTax would ask if all of the distribution was spent on qualified educational expenses. If the answer was Yes then none of the amount was added to taxable income. That doesn't happen in 2025, and I just spent an hour trying to debug what was happening before finding this thread and deleting the 1099-Q's from my return to fix it.
I'd recommend updating the process to again ask the user if the distribution was used for qualified educational expenses. If so, then either tell the user to delete the 1099-Q, or properly record the distribution as fully qualified so it doesn't increase taxable income. It's a terrible user experience right now.
