1098 and 100Q

You do have a problem.  You must have paid qualified expenses in the same calendar-tax year as the distribution was made .  See a similar question at https://ttlc.intuit.com/community/college-education/discussion/529-withdrawal-in-2019-used-for-2020-qualified-educational-expenses/00/1150705

Since this is your first year, be sure to do a better job on timing for the next three years.

Read on for more about 529 plans.

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Qualified Tuition Plans  (QTP 529 Plans)

It’s complicated.

For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” (usually the student dependent). The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". The distribution will be reported on IRS form 1099-Q. 
The 1099-Q gets reported on the recipient's return.** The recipient's name & SS# will be on the 1099-Q.
Even though the 1099-Q is going on the student's return, the 1098-T should go on the parent's return, so you can claim the education credit. You can do this because he is your dependent.

You can and should claim the tuition credit before claiming the 529 plan earnings exclusion. The educational expenses he claims for the 1099-Q should be reduced by the amount of educational expenses you claim for the credit.
But be aware, you can not double dip. You cannot count the same tuition money, for the tuition credit,  that gets him an exclusion from the taxability of the earnings (interest) on the QTP. Since the credit is more generous; use as much of the tuition as is needed for the credit and the rest for the interest exclusion. Another special rule allows you to claim the tuition credit even though it was "his" money that paid the tuition.
In addition, there is another rule that says the 10% penalty is waived if he was unable to cover the 529 plan withdrawal with educational expenses either because he got scholarships or the expenses were used (by him or the parents) to claim the credits. He'll have to pay tax on the earnings, at his lower tax rate (subject to the “kiddie tax”), but not the penalty.

Total qualified expenses (including room & board) less amounts paid by scholarship less amounts used to claim the Tuition credit equals the amount you can use to claim the earnings exclusion on the 1099-Q. 
Example:
  $10,000 in educational expenses(including room & board)

   -$3000 paid by tax free scholarship

   -$4000 used to claim the American Opportunity credit

 =$3000 Can be used against the 1099-Q (usually on the student’s return)

Box 1 of the 1099-Q is $5000

Box 2 is $600

3000/5000=60% of the earnings are tax free

60%x600= $360

You have $240 of taxable income (600-360)

**Alternatively; you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he 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 to claim the tuition 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. It will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry.

If your 529 distribution exceeds your qualified expenses, the earnings portion of the distribution will be taxable, and may be subject to an additional 10% penalty.  There are exceptions to the penalty, but those exceptions are limited. 

This link will take you to the section of IRS Publication 970 about how to figure the taxable portion of your 529 plan distribution, and includes information about exceptions.

Other considerations are:

The 529 plan can be used for some things not reported on the 1098-T:

• room and board, books, fees, supplies and equipment;
• purchases of computer or peripheral equipment, computer software, or internet access and related service (used primarily by the beneficiary enrolled at school); and,
• payments on qualified student loans. 

So, make sure you have entered all these in TurboTax for the year you received a distribution.

Also, consider whether your student is ineligible for other credits because of your income levels (e.g., the American Opportunity Tax Credit).  If so, make sure that you've allocated "zero" to those credits in TurboTax so that the software will apply all your qualified education expenses against the 529 plan distribution when calculating the taxable portion (instead of "using" some for an AOTC you don't get anyway).