Yes, you can delete the 1099-Q. It will not raise a red flag at the IRS. In fact, when
the box 1
amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing
about the 1099-Q on the actual tax forms. But it will prepare a 1099-Q worksheet
for your records, in case of an IRS inquiry.
I assume your income is too high to claim the AOTC. So, yes you do have to use a work around if you do want to enter the 1099-Q.
Go through the
education section again. When you get to the screen that says “Here’s your
Education Summary”. Click edit next to
“Education Information”. When you get to the screen titled “Amount Used to
Calculate Education Deduction or Credit”, verify the amount you want to use or
change it (to zero, in your case).
