I looked at the figures on the federal summary and it factors in with how the education credit is calculated.It deducts $46 for the actual tax, $15 from credits...

The distribution earnings were $209.my refund decreased by $72 for federal and $9 for state.

I don't see any other explanation for it to reduce my refund by that $70 when I enter the 1099q.As soon as I delete to 1099q it gives the $70 back to me.

Yes, we do not get any scholarships or financial aid or grants.The qualified expenses were tuition and required text books.

Yes, the qualified expenses and the 529 distribution were exactly even.We had no other expenses above and beyond this.