Yes, but not as income.

First enter the 1099-Q (for the 529 distribution) in:

Deductions & Credits > Education >  ESA and 529 qualified tuition programs (from 1099-Q)

Then enter the qualified educational expenses:

Deductions & Credits > Education >  Expenses and Scholarships (Form 1098-T)

When you get to Here's Your Education Summary, scroll down and start Scholarships/Grants (for all schools)

This will offset your qualified educational expenses.