You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board to cover the distribution. That is, none of the "earnings" (not earned income), in box 2, will be taxable. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You cannot double dip!
When the box 1 amount on form 1099-Q is fully covered by expenses, and your correctly enter your educational 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.
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."
