Have you entered the 1098-T yet? It reports the tuition expenses and if they are not entered yet, TurboTax taxes the distribution until it is. If the 1099-Q distribution paid for qualified education expenses, you do not have to enter it at all.
If the distribution doesn’t exceed the amount of the student's qualifying expenses, then you don't have to report any of the distribution as income on your tax return. If the distribution exceeds these expenses, then you must report the earnings on the excess as "other income" on your tax return. When you pay a student’s school expenses with these funds, you cannot claim a tuition deduction or either of the educational tax credits for the same expense. See 1099-Q guide
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