Hi, I loaded a 1099-Q into Turbo tax with $19,000 Gross Distribution (box 1) and I loaded Earnings $5,300 (box 2). I also loaded 1098-T box 1 qualifying Tuition $8,500.00, Books Expenses loaded at $0.00. I STOP and see my Federal tax refund = $2000. When I load Room and Board $11,880.00..... my federal refund is the same = $2000. The room and board was paid for with the Gross 529 Distribution isn't some of it tax deductible. Reference: Turbo Tax:
The one exception is if room and board was paid for with a Coverdell ESA or 529 plan distribution. YES it was above. In that case, the cost can be deducted from the taxable portion of the distribution.
If there was any taxable distributions from your 529 plan, the room and board expenses would reduce the taxable amount. It may be necessary to enter the form 1098-T information first before you enter the 1099-Q information in TurboTax. I suggest you try deleting the form 1099-Q entry and then re-enter it.