The 1098-T and the 1099-Q are only informational documents. The numbers on them are not required to be entered onto your tax return. You claim the tuition credit, or 529 plan earnings exclusion, based on your own financial records*.
Whether you need to amend her return, depends on whether the changes affect her bottom line. If you put the refunded amount back in the 529 account, you most likely do not need to amend.
*On form 1099-Q, instructions to the recipient reads: "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."
You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. You would have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You cannot double dip! When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records.
