If the 1099-Q goes on your return, enter it before you enter the 1098-T. The interview process goes smoother. Enter at Deductions & Credits/Education/ ESA and 529 Qualified Tuition Programs (or type> 1099-Q <in the search box).
Alternatively; you can just not report the 1099-Q, at all (or the 1098-T), if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry.
On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
