QMarkWiz72 You shouldn't be taxed if you used your education plan distributions to pay for qualifying education expenses, which include room and board necessary for you to attend school.
If your qualifying education expense are more that your distribution, then you don't need to report the form 1099-Q on your tax return. However, you need to keep in mind that the education expenses you use to exempt your distribution from taxation cannot also be used for you or anyone else to qualify for an education credit.
To have TurboTax calculate your allowed deductions, you would need to enter your form 1098-T in the Education section, in Deductions and Credits, an then Expenses and Scholarships (Form 1098-T). However, if you are a dependent of someone and they received an education credit for you, you would have to exclude expenses they used to qualify for the credit. Please keep in mind that room and board are not allowed for the education credit, so you can use all of those expenses to exempt your education plan distributions.
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