The fact that the Coverdell (ESA) distribution went to your son, rather than you doesn't change the answer.
" I don't feel like I would get the education credit since it is completely covered."
Look at it this way: you/he took money out of your plan. You get to decide what you use the money for. If you decide not to use it for education (and that is essentially what you are doing), then it becomes taxable. But since box 2 is 0; the taxable amount is also 0. Since you know the taxable amount is 0, you do not have to report the distribution.
When the taxable amount is 0, TurboTax will enter nothing about the 1099-Q on the actual tax forms. So, don't risk making a mistake: don't enter the 1099-Q in TT.
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."
