Crazy! Same thing just happened to me. Had already entered 1098-T and then entered 1099-Q. The 529 contributions were already taxed and all distributions were used for tuition. TurboTax mis-calculated and increased taxes and reduced refund. This is clearly not correct. I went from getting a substantial refund to owing money. Called TurboTax and they said to enter 1098-T and delete 1099-Q. This is BS. I've been a TurboTax user every single year since the 80's and since I switched to TurboTax on-line, the product has gotten worse every year. Way more clicks and useless screens of information to navigate through that add no value other than trying to extract more money from my pocket for Intuit.
I'll bet many less astute customers are over paying taxes due to this.
