Q. Can I delete the 1099Q entries and enter the earnings portion directly in any other section?
A. No. Yes, you can get the taxable income on your return that way, but technically you have to also submit form 5329 to claim the scholarship exception to the penalty.
It's not clear if you are the recipient of the 1099-Q or the student is. I'm going to assume your name and SS# are on the 1099-Q. I'm going to further assume you not eligible for a tuition credit, because you income is too high.
You are right: "TT is not great with college exps and 529s, sadly". Here's quick workaround in TurboTax:
Enter the 1099-Q. When asked who the student is answer: someone else not listed here (lying to TurboTax to get it to do what you want does not constitute lying to the IRS). Enter the student's name when asked. A few screens later, you'll get one simple screen to enter expenses. Also enter the amount of the scholarship in the box "Tax-free assistance". This reports the earnings as taxable and claims the scholarship exception. You do not have to deal with the complicated Educational expenses and Scholarships (1098-T) section later.
