This is simple. Do not enter the 1099-Qs and the 1098-T on either your return or hers.
Both the 1099-Q and 1098-T are informational documents. The numbers on it are not required to be entered onto your tax return. Receipt of a 1098-T frequently means you are either eligible for a tuition credit or deduction or possibly your student has taxable scholarship income. But, in your case, you know that you have neither.
You can just not report the 1099-Q, at all, if f your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the 529 plan 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."
