Education

I'm not sure what you mean by "exception withdrawal".  The fact that the funding was from scholarship money  does not change the fact that you will have a distribution (withdrawal) and will get a form 1099-Q.   The only question is how will that distribution (box 1 of the 1099-Q) be split between basis (box 3 of the 1099-Q) and earnings (box 2).  The plan administrator (custodian) will make that determination.

 

As long as you used the total distribution for qualified expenses (including room & board), none of it will be taxable.   If you did not use if for qualified expenses, just enter the 1099-Q and TurboTax will treat the entire box 2 amount as taxable (not the box 1 amount).