The best option would be to call support and request a download TurboTax program where you can make the necessary adjustments on the forms. They may be able to do that if they can't offer a better solution. Also, if you make adjustments on the forms or by using the option I will mention next, you may invalidate your TurboTax accuaracy guarantee at least as it applies to this particular issue, so you may want to get some guidance from our support team.
If the education expenses were paid for from tax-free scholarships, then you are correct you would be exempt from the penalty on earnings upon withdawal of the education savings funds. You are instructed to enter expenses associated with the distributions when you go through the 1099-Q entries in TurboTax. If you enter education expenses equal to the earnings reported on the form 1099-Q then your earnings won't be taxed and form 5329 will be completed properly, as your distribution will show on line 5 and the exempt portion of it will show on line 6. The worksheet in TurboTax will be incorrect, as you won't have an entry on line C of the worksheet, where tax-free scholarships are mentioned, but that worksheet does not get submitted with your tax return so the return will be correct. I admit is is a work-around of sorts, but it will give you an accurate tax return. Just make sure you answer the questions in the education expenses portion in a manner that insures you don't qualify for an education credit.
@mydtaxes
(edited 3/17/23 at 7:10 AM PST)
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