I have this same issue. (We use TurboTax Deluxe desktop.) Preparing our son's tax return, TurboTax interview has us enter the 1099-Q amounts, and the box 2 amount is treated as fully taxable. There doesn't appear to be a way to enter the full amount of educational expenses to offset this amount.
We know that we need to keep the 1099-Q form on file, along with all relevant receipts re. educational expenses. Do you advise that we omit the 1099-Q information and delete these amounts that we had entered in response to the TurboTax prompts? (Or is there a way to enter the tuition expenses that we have missed?)
