If you have Qualified Education Expenses to offset the amount of the distribution in you 1099-Q you will enter this in Deductions and Credits. Subsequently, TurboTax will ask you to enter the amount of these expenses after you have entered the info from 1099-Q. Please keep in mind, if you education expenses do not exceed the amount of your distribution, the excess will be considered income and taxed as well.
If you did not use the distribution for Qualified Education Expenses this information must be entered as income.
Qualified Education Expenses; for purposes of 529 and Coverdell ESA Plans:
- Tuition and fees;
- Books, supplies and equipment; Computers and Software
- Room and board expenses for students enrolled at least half-time only to the extent they are not more than the greater of:
- The allowance for room and board included in the cost of attendance for federal financial aid purposes, or
- The actual amount charged if the student resides in housing owned or operated by the eligible education institution; and
- Expenses for special needs services required by a special needs beneficiary and incurred in connection with enrollment or attendance.