You do not need to have your form 1099-Q amended.
As the owner of the 529 plan, you can use the beneficiary's total qualified education expenses (including room and board) to cover the distribution reported on the form 1099-S, even if you no longer claim your daughter as your dependent.
Alternatively; you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if she lives at home) to cover the distribution. You would still have to do the math to see if there were enough expenses left over for you (or your daughter) to claim the education credit. Again, you cannot double dip!
When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry.
On form 1099-Q, instructions to the recipient read: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."
You no longer can claim your daughter's education credits such as the Lifetime Learning credit. She only can claim them, bearing in mind that any expenses that you used to cover the 1099-Q cannot be used by your daughter to claim the credits.
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