@8194Harlem You say *Fully qualified expenses are not offsetting the taxable portion of the 529*.
Technically, that's not what you are after. You want fully qualified expenses to offset the distribution itself (box 1 of the 1099-Q). What ever part is not offset is then used to calculate the taxable portion of the earnings (box 2).
If you know none of it is taxable, then just don't enter the 1099-Q, in TurboTax. See explanation above.
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.
