We got a refund for room/board in 03/2020 that was paid with the 529 distribution in 2019. We don't have 529 distribution in 2020. How do I report this refund?

[JQ21]

My daughter graduated in May 2020, so there is no other qualified expenses cover the refund. By the time I realized the tax issue, it was too late to recontribute back. I know the earning is taxable and there is a 10% penalty. Moreover, I know which lines to enter on 1040 for the earning and penality. But how can I do it in TurboTax?

[Hal_Al]

I suggest you enter it as a 2020 distribution. 

[JQ21]

Thanks.

Do I need a 1099-Q form to do that? I don't have one for 2020. Does it mean that I need to create a "fake" 1099-Q entry with the refund? I suppose this will force TurboTax to include both the earning and penality. Will do that if there is no better solution. 

[Hal_Al]

Yes, a fake 1099-Q is the only  way to do it.  But the "fake" is not sent to the IRS.  It is only an entry mechanism.