Yes, you are eligible and the computer cost is eligible.
You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records.
On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
Otherwise. you need to answer yes to the books cost question, then enter the computer cost as the subsequent screen.
Alternatively, high school expenses are now eligible for a 529 distribution. The secondary school expenses boxes come up in the 1099-Q section of TurboTax (rather than later in the educational expenses section)
