Thanks Amy. I have reviewed schedule M1529 and I am only claiming the subtraction, not the credit. With that said, my subtraction benefit is being wiped out when I add in the 1099-Q. This is the case even though the funds are being used for qualifying expenses. I see the note below on the page you linked to. It would seem this should not be happening if I use the funds for qualified expenses.
Note: You may be required to pay back some or all of the benefits received if you claim this credit and use the account funds for nonqualified expenses. See Education Savings Account Recapture Tax.
