The purpose of entering the tuition, then off setting it with scholarship ("tax free assistance") is so TurboTax (TT) will know to not calculate the 10% penalty, if some your distribution ends up taxable. There is a penalty exception for when expenses that coulda been use for a 529 distribution were used instead for the tuition credit and/or were covered by scholarship. TT has to prepare form 5329 to claim the penalty exception.
That's a good question. I'll add that explanation above.
