I agree with DawnC, the most likely explanation is TurboTax has assigned some of the expenses to the Tuition Credit.
If the student is eligible for the tuition credit (especially the American Opportunity Credit [AOC]), it's best that she claim that and pay a little tax on the Coverdell ESA.
If she has graduated and is working, she is probably eligible. This assumes the parent didn't already use up the 4 allowable AOC credits.
Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary". Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to “Education Information”. When you get to the screen titled “Amount Used to Calculate Education Deduction or Credit”, verify the amount you want to use or change it.
You may reach that or a similar screen earlier in the interview.
