Why does Schedule 1 line 8z from TurboTax not match my 1099-Q Box 2?

Line two on Form 1099-Q lists your earnings from funds invested in the education savings account that are associated with your distribution. The full amount would typically be taxable if you didn't use all of your distributions from the account for qualifying education expenses. It is possible your accountant used all of your education expenses in the prior year to increase your education credit so it wasn't necessarily done wrong in the previous year. One thing to keep in mind is that you can use room and board expenses as qualifying expenses for the education savings account withdrawal, but not for the education credit. So, if you have room and board expenses, you typically don't have to pay tax on all of your earnings from the education savings account distribution.