I have the same issue and and same question.
The full amount of 529 distribution was used to pay for my daughter's college tuition, which is qualified education expenses.
We are not claiming her as dependent this year. When she adds the 1099-Q to the return, TT shows the earning portion shows in box 2 is taxable. She received and add the 1098-T showing the tuition payment to college.
I checked our return last year when we claimed her as dependent, the earning is not taxable.
There were some posts in previous year suggesting not to report/delete the 1099-Q if the full distribution amount was used for qualified education expenses.
I just wanted to check again so we can understand why earnings show as taxable on my daughter 2020 tax and just wanted to make sure the return is filed correctly.
Thank you for your help.
