Note that if you qualify for one of the education credits (American Opportunity or Lifetime Learning) it is almost always better to use education expenses for those credits first, even if part of your 529 plan distribution (the earnings) becomes taxable.
So, when you go to that line 17 on the Student Info Wk, you may want to use $4,000 instead of zero. That may give you the lowest tax, even if part of your 529 plan distribution is taxed. One of the exceptions to the 529 plan 10% additional tax is using expenses for an eligible credit.
And yes, the screen for that in TurboTax for that is harder to find than it should be.
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