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)
Follow the interview. Since there will be no expenses entered, TT will treat it as a non qualified distribution including the 10% penalty. Only the earrings (box 2 of the 1099-Q) will be taxed and subject to the 10% penalty.
There is currently a glitch in TT when entering expenses. But that shouldn't affect you.
