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.