Did TurboTax say that there were 'taxable earnings' or 'taxable scholarship income' to report on your son's return?
For most qualified education program beneficiaries, the amounts reported on the 1099-Q aren’t reported on a tax return. If you know the 529 distributions were all used for qualified education expenses, you could delete them from your return. Or, at least delete the 1099-Q issued to him, as he would report that on his return (if he is required to file a return).
If your son received a 1098-T, after subtracting Scholarships in Box 5 from Tuition in Box 1, is there enough expenses left to cover the 1099-Q distributions?
If you also qualify for the AOC, then 4K of expenses goes toward qualifying for this credit, which may then cause some of the 529 distribution to be taxable.
Or, if his Scholarships exceed Tuition, he may have some taxable scholarship income to report (if he is required to file a return).
Click this link for more info on Form 1099-Q.
Here's more discussion on Taxability of 529 Distributions.
@jgefroh
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