As explained above, you enter your expenses, including room and board, at the 1098-T section, later in the interview.
It can get messy and your situation is not unusual. If you're having problems, there is a workaround:
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. Press Done at the 1099-Q summary screen, to get there. You do not have to deal with the complicated “Educational expenses and Scholarships” (1098-T) section later.
