If the distribution was used for school expenses, you needn't enter the 1099-Q unless someone will use the expenses for a credit.
If the student received a refund, and the refund was re-deposited into the account within 60 days of a distribution, the funds are not taxable.
When a 529 Plan is used for the benefit of the student, make the distributions in the name of the student. Transfers directly to the school results in 1099-Q issued in the name of the student.
In your case, you need to coordinate with the student and the person claiming the student. The expenses can be used to offset the 1099-Q OR used to claim a credit, not both.
Since the 1098-T is always issued to the student, the student should also initiate the distributions so that the 1099-Q is also issued to the student. This way the 1098-T and 1099-Q will be on the same return.
If you enter the 1099-Q into your TurboTax program, you will need to select that it was used for education purposes for someone not listed on your return.
The person claiming the student will need to account for this by lowering any education expenses they claim if they are claiming a credit.
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