Made an excess withdrawal from my daughter's 529 plan ($80). I enter the 1099-Q information, but not prompted by the "non qualified expenses" question. How to trigger?

The program usually waits to determine taxability until after you’ve entered the student’s expenses (Form 1098-T).

TurboTax doesn't ask "was this non-qualified?" right away... instead, it asks for your 1099-Q info, then asks for your 1098-T and other expenses.

For example: say your total 1099-Q distribution is $5,080 but you only enter $5,000 in qualified expenses,   The program will apply the tax and the 10% penalty to the earnings portion of that $80 difference.

1. Open or continue your return.
2. Enter the 1099-Q (and if nothing happened)... you need to go to the 1098-T / Education Expenses section:
3. Under Federal tab, Click on Deductions & Credits, then Click on Education, and finally Click on Expenses and Scholarships (Form 1098-T).
4. Proceed through the interview screens, until you are asked about her school expenses, and then enter the actual qualified amounts (Tuition, books, room/board). *
5. Once you finish the expense section, the program compares the expenses to the 1099-Q you entered earlier. If the expenses are lower than the distribution, it will then generate the "Amount Used for Non-Qualified Expenses" or "Taxable Distribution" screens.

Note: If the 1099-Q was issued in your daughter’s SSN (Box 6 is checked or her name is on the form), the form actually belongs on her tax return, not yours.

If she is your dependent, you still enter her 1098-T on your return to get the credits, but the "taxable" portion of a 1099-Q in her name would technically be reported on her own return.

If the 1099-Q is in your name, then you enter it on your return.

You generally do not need to report a 1099-Q on your tax return if the total distribution from your 529 plan or Coverdell ESA is less than or equal to the beneficiary's adjusted qualified education expenses.

* And finally... If you bought a $80 "required" book or a piece of software that wasn't on the original tuition bill, you can add that to your "Qualified Expenses" total.  This would make the $80 qualified and allow you to skip entering the 1099-Q entirely, which is perfectly legal (and much simpler).