Why is TurboTax taxing my 1099-Q distribution for my daughter even though her college tuition exceeds the distribution?

I'm the recipient of the distribution. We did not apply for any of the credits, like the American opportunity or the Hope one.
I've entered a 1099-T for her with the tuition exceeding the distribution.
When I enter the 1099-Q, the tax I owe increases. I believe it should be tax free.
Any help would be appreciated.