Q. Could you please elaborate on how to get the details of entering form 1099-Q just right?
A. No. Too much detail, too many scenarios. Essentially you need to have some idea of what the output will be. Follow the education interview carefully.
In your case you know none of it is taxable. And the IRS instructions are "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return".
One common situation is that TurboTax used part of your dependent's college expenses to claim the Tuition credit, even if you are not eligible. That reduces the amount that can be used to claim the 529 earnings, shown on the 1099-Q, as being totally tax free. 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 screen sooner.
Leaving off the 1099-Q does not impact your state form.
Part of your problem is watching that federal "refund tracker" before you've entered all the info. It ticked down when you entered income (the earnings in box 2 of the 1099-Q). It'll tick back up when you enter the offsetting expenses.
