If your 529 distribution was used for Qualified Education Expenses, you don't have to enter the 1099-Q in your return.
If the 1098-T qualifies you for an Education Credit (less expenses used against 529 distribution), enter it in your return. If not, you don't need to enter it either. Your daughter could enter it in her return, if she is required to file a return.
There are a couple kinds of refunds your daughter may have received. Since students weren't initially eligible for Stimulus payments, if your daughter filed her own return for 2020, she may be getting that payment.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) establishes two emergency financial aid grant programs for students. One involves unexpended Federal Work-Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG) funds. The other involves a new Higher Education Emergency Relief Fund (HEERF), at least half of which must be used for emergency financial aid grants to students.
Neither the Grant funds or Stimulus payments are taxable.
Click this link for more info on Coronavirus Relief for Students.
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