You can just not report the 1099-Q, at all, if your student loan payment was $10,000 or less. When the box 1 amount on form 1099-Q is fully covered, TurboTax will enter nothing about the 1099-Q on the actual tax forms.
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."
You may withdraw up to $10,000 from their plan to pay down qualified student loans penalty-free—with conditions. The first is that the $10,000 maximum is a lifetime limit for a beneficiary and each sibling. Secondly, plan holders cannot claim any student loan interest deductions paid with this money.
