If a college returns money, it is recommended to roll it back into the 529. Your case is off since you are graduating and should have more income for 2021 and possibly no tuition.
2020- you had qualified distributions so 1099-Q is not taxable. Does not even have to be entered but can be after the 1098-T and expenses are entered.
2021- college returned some money, this could be under the scholarship box 5 next year, which would make it taxable unless it it smaller than box 1.
Congratulations on graduating!
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