Are you claiming her as your dependent?
Although you are only taxed on earnings, if the full distribution was not used for room and board (or other education expenses) the tax on the distribution will be based on a ration of earnings and basis.
You must enter the 1099-Q first into the TurboTax program. Afterwards, in the expenses section (Form 1098-T) room and board expense is an option for entry.
Until Form 1099-Q is entered, room and board is not offered since that expense does not qualify to be used towards a credit, nor to offset scholarships.
IRS Pub 970
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