Looks like this issue is still not fixed in Turbotax Home & Business 2019. I just spent over 2.5 hours trying to figure out why I was getting taxed on a distribution from a 529 even though there were sufficient qualified educational expenses. It turned out to be this $10K that had been entered automatically on Line 17 "Used for credit or deduction" of Part IV - Education expenses, of the Student Information Worksheet.
