The values being out of balance is usually just a rounding error. Change either box 2 or box 3 by $1 to balance it (box 2 + box 3 = box 1).
Q. I was told to enter it as a 1099-Misc, but now I am confused.
A. Stick with the 1099-Q interview. It goes on the same line (8z of schedule 1), either way. But the death of the beneficiary is a penalty exception, which TT will handle if you enter it as a Qualified Tuition Plan distribution, in TurboTax.
In TurboTax (TT), enter at:
Federal Taxes Tab (Personal for H&B version)
Deductions & Credits
-Scroll down to:
--Education
--ESA and 529 Qualified Tuition Programs (1099-Q)
