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.
https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-Is-IRS-Form-1099-Q-/INF14817.html
