The Distributions from an ESA are not Deductible. Additionally if you use an ESA distribution for education expenses you can no longer take the Tuition Deduction or the Lifetime Education Credit. If your education expenses exceed the ESA distribution, only the excess may be considered for the American Opportunity Credit, if the student qualifies for this credit.  

If the Distribution doesn’t exceed the amount of the student's qualifying expenses, then the distribution is not Taxable and you don't have to report any of the distribution on your tax return. Quite simply if this is the case you don't have enter the information from 1099-Q. I understand that this sounds strange, especially regarding taxes, but the IRS does not request any additional information to substantiate whether or not your Distribution exceeded your actual qualified expenses. Nevertheless it would be wise to keep a good record of these expenses just in case your return gets picked up for examination.

TurboTax provides a second option. If you have already entered the information from 1099-Q you can counter these amounts by entering Qualified Education Expenses in the Credits and Deductions Section (please view the screenshot below). Additionally if these expenses exceed the ESA distribution, the part of the excess will be considered for the American Opportunity Credit, if the student qualifies for this credit.