Retirement tax questions

Follow these steps to enter the income (the programs vary a bit but this lets you know where you are going):

1. go to the federal income section
2. scroll to the bottom/ show less common income
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description  
9. Amount, enter your amount
10. Continue

If you really did not have any other 529 qualified Room and Board  and Qualified Education Expenses - Internal Revenue Service expenses then it is taxable income.