Vanguard didn't report earnings in box 2 but put a huge number in box 3 (basis) on form 1099-Q. What should I do with TurboTax?

[wkms]

I withdrew Education Savings Account (ESA)  in 2021 for my son's first year college tuition expense from Vanguard.  Vanguard sent 1099-Q.  They didn't report earnings on box 2 and wrote a xxxxxxxxxxx in box 3 (basis).   But turbotax asks all this details.  Has anyone dealt with this type of issue before?

[KrisD15]

If the distribution was used for education expenses, it needn't be entered into the TurboTax program, however if it paid tuition and fees, that amount of tuition expense may not be allocated towards an education credit. 

If you are going to enter the 1099-Q, the box reporting earnings needs to be entered. 

You need to check with the financial institution to find out if for some reason the account had no earnings. That would be very uncommon. 

If any of the distribution is taxable, the program needs to allocate the tax between the earnings and the basis.