Although @JillS56 is somewhat correct, (the student is liable for claiming the income), unless the student is claiming the entire distribution, the dependent student's program cannot calculate the taxable portion based on expenses if expenses are also used by the parents towards a credit. TurboTax programs do not talk to one-another.
If you are clear on who should claim what, you can enter the 1099-Q on the student's return,
but again, the parents that claim the student needs to enter all education documents into their TurboTax program if they want their program to do the math.
The parents' program will tell the parents what the student needs to claim.
Only the amount of income that needs to be claimed is then entered into the students TurboTax program.
IF any of the distribution is taxable, the student reports that Unearned Income amount as "Other Income" on Schedule 1.
If any Scholarship income is taxable, that is reported as Earned Income on the 1040 line 1.
@crash345u
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