You don't need to use override, but you may need to adjust your entries.
There are three things you can do with your Qualified educational expenses (QEE):
- Allocate then to scholarships (so that the scholarship remains tax free)
- Use them to claim an education credit
- Allocate them to the 529 distribution (1099-Q) so that it will not all be taxable
TurboTax allocates QEE, in that order, but it doesn't always do a very good job if you want something different. TurboTax allocates QEE, in that order, until you tell it otherwise. It's best if you have some idea of the outcome expected, when you make your entries.
Provide actual numbers and I'll tell you how to do that. It's usually best to allocate QEE away from scholarship (up to a certain amounts) and to the credit and 1099-Q.
