You can just not report the 1099-Q, at all, if your beneficiary has sufficient educational expenses, including room & board 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."
You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip.
That said, the secret to getting to the screen to enter R&B and other expenses is tell TT that you have an exception to not having a 1098-T*. When asked if you have book expenses answer yes (books are on the same screen as R&B).
*Or just say you do have a 1098-T and enter 0 in boxes 1 & 5. Lying to TurboTax to get it to do what you want does not constitute lying to the IRS.
