Not sure if this will help you, but.....
I decided I didn't want to delete the information, mainly because I felt better having the information within my tax records, and the thought of deleting it just to get around what was, at least to me, clearly a turbo tax issue seemed wrong. In then end I figured out a way around the turbo tax issue.
It appears that turbo tax was allowing entry of the 529 distribution and indicating how much of it was being used to pay off student loans. However, they did not appear to be using that information on on the Form 1099-Q in section "Qualified Tuition Program (QTP) Computation of Taxable Distribution" line 2.a. So what I did was go into the 2 1099-Q forms inside turbo tax form mode and I and manually entered appropriate values (split between the two 1099 forms) to account for the total distribution amount that went towards student loan payments - up to the $10K limit. Once I did this, everything else worked out and I could both keep my 1099 information AND not pay unnecessary and unwarranted taxes on the distribution.
Hope this helps.
