@Rcgus Just don't enter the 1099-Q.
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."
That said, there's nothing that needs to be fixed in TurboTax. The only relevance to the beneficiary not being the recipient is the flow of the interview. When you get to the 1099-Q summary screen, click Done (don't jump to another section). Clicking Done gets you another screen that asks "What level of school did the student attend" When you answer high school or elementary, it will give you a screen to enter expenses rather than waiting for the college expense section later.
