You are only required to enter the 1099-Q data into TurboTax if you need to report a taxable distribution, and you are entering it to pay that tax. 

In your situation, delete Form 1099-Q from TurboTax and maintain records to support the rollover to the 529 plan with your tax returns for at least (3) years.  That will provide the support that you need in the event of any questions about the rollover. 

You can refer to the Instructions to Recipient on Form 1099-Q: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 

Also see: Guide to IRS Form 1099-Q.

Thanks @SusanY1 

It would be nice if the TurboTax Deluxe program made that clearer.  The way "Guide Me" walk-through works currently it seems like entering any 1099-Q is required in all cases.  Maybe next year  ¯\_(ツ)_/¯

Many colleges have closed dorms due to COVID-19 for the balance of the Spring 2020 semester and may be refunding a portion of room and board. If the room/board were billed in 2019 (for Spring 2020) paid with a 529 plan in 2019, but the credit is issued in 2020, how is that handled?  If the money is re-contributed to the 529 plan in 2020, will a new 1099 Q be issued for 2019?  

No, the 2019 1099-Q won't be adjusted nor re-issued.

You can recontribute the refunded amount. 

You can still claim the room and board expense towards the distribution, or report that the amount was rolled back into the account. 

According to the IRS:

"If a student receives a refund of qualified education expenses that were treated as paid by a QTP distribution, the student can recontribute these amounts into any QTP for which they are the beneficiary within 60 days after the date of the refund to avoid the need to figure the taxable part of the QTP distribution."

"Refunds received after 2019 but before your income tax return is filed. If anyone receives a refund after 2019 of qualified education expenses paid on behalf of a student in 2019 and the refund is paid before you file an income tax return for 2019, the amount of qualified education expenses for 2019 is reduced by the amount of the refund."

In this situation, what if the refund/recontribution didn't happen until 2020.  Is the recontribution considered a 2019 or 2020 event for 529 record keeping?

Simple answer: 2019.

It's the 2019 Distribution (documented by a 1099-Q) that you need to account for.  But a more general answer is: you need to have a running accounting of the 529 plan for the duration of your student's college years.

My daughter received a refund from her college (housing) and deposited it in her checking account. How does she report that income for her taxes? I see nothing to indicate how to report this tax situation. 

Q. My daughter received a refund from her college (housing) and deposited it in her checking account. How does she report that income for her taxes?

A.  What you described does not constitute taxable income. Getting a refund from college is no different from getting a refund from Walmart for returned merchandise.

What's the rest of the story? For example, was the housing paid by scholarship? Even then, it's not the refund that makes it taxable. It's the fact that room & board are non qualified expenses for tax free scholarship. 

Was this originally paid through a 529 account and if so, which year did she take the distribution and which year did she receive the refund? 

The money came because we paid for the housing twice.  Once from my father and once from ourselves (wife and I). 

We paid for housing out of pocket. Our 529 plan does not cover room and board.

If the funds that were refunded were not paid from a 529 Plan or scholarship, your daughter does not need to report the refund as income.  If the refund was originally paid with funds from a 529 Plan and not reinvested, the person who received the 1099-Q may need to report a portion as an excess withdrawal.  Please let us know if that is the case so we can assist you with reporting.

If the refund was from "out-of-pocket" funds, there is no reporting requirement for the student or you. 

@supplyside 

My child used her 529 to pay for qualified college expenses in November of 2022 for the Winter (Jan-April) semester of 2023.  Due to medical reasons, she dropped out of school and got a full refund of her tuition. I was told part of the refund ($740.48) was for meals (we did not use the 529) for this.  Well, learned today that the entire refund was for tuition. We sent 90% of the money back to the 529 within the 60-day recontribution period. $740.48 was not returned due to the wrong information given to us--thinking this was meal money not yet reimbursed out of the 529.

Now, I know we owe tax on the earnings part of this $740.48. I have calculated that we owe tax on just $215 (the earnings part of the $740.48). Where do I enter this $215.00 taxable income?  We did not get a 1099-Q this (2023) year.  The 1098T for 2023 just has the tuition refund for winter 2023 in box 4--rest of form is blank.  

I put the $215.00 under miscellaneous income (Under Less Common Income).  Is this correct?  Will I be able to attach an explanation to this number via a statement somewhere?  Did I enter this taxable ($215) value in the correct location?

Thank you!