I agree that there is something wrong with the 1099-Q interaction with the education expenses and that is further impacted by qualifying for the education credit or not (in my case I am referring to the American Opportunity Credit). I am right on the line of that credit which is affected by how much we contribute to our traditional IRA. I'm not a tax expert (did alot of googling) but just answering the questions that Turbo Tax asks causes me to owe more taxes than I think is required. Also, Turbo tax doesn't seem to let you modify the 1099-Q, box 2 (taxable earnings), information without changing boxes 1&3.
Also, putting in the 1099-Q or leaving it out does affect the state taxes.
Perhaps Turbo Tax needs to look into this further.
