What you are describing is not something I'm seeing in the interview. I was never asked what each child's education expenses were, so I'm not sure how TurboTax is determining that I received a distribution that is larger than the expenses.
I have compared the 1099T for each child (which only shows part of the qualified expenses) with the distribution in the 1099Q and in each case I spent more than I received in distribution.
So I believe there is a bug in TurboTax but there is no mechanis to report it to the company (that I can see). I guess my only choice is to hire an actual tax preparer this year and for the years my kids are in college.
My warning to all other parents is don't trust whatever you are getting from TurboTax on this topic.
