For 2020, the IRS has issued temporary guidance to extend the usual 60 day redeposit window so that you may return tuition refunds to the 529 plan by July 15, 2020 in order to avoid a situation where the funds create taxable income. When returning contributions to the plan sponsor, be sure to indicate that the funds are a recontribution by including a letter of instruction or other notation with the funds.
Guidance is less clear regarding whether applying the funds to other expenses in 2020 would allow for the same tax treatment, though there is some reason to believe that it may. However, returning the funds to the plan sponsor is the most clear path to avoiding income tax and/or penalties on the amount of the refund.
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