Dealing with COVID-related college refunds from 529 plan

[JayTay]

We paid for a full semester of tuition, room and board from our 529 plan for our daughter.  Mid-way through the semester, due to COVID, the college sent kids home and put a pro-rate share of room and board back on the bursar's statement.  Because we knew she would return to campus eventually, we did not get a "refund" and redeposit that amount to the 529.  When she returned for the Spring 2021 semester, that credit balance was deducted from the amount due and we funded the necessary difference again from the 529.

As a result, the 1099Q has the full amount of the distribution but the 1098T from the school has the net amount from last year, a $4900 difference.  I'd very much like not to pay tax on this because we never "received" the funds and they are being used for qualified expenses, though in a subsequent year.

How should we reflect this in Turbotax? 

[MaryM428]

In this case, do not use the amounts from the 1099-Q, but fill in your actual expenses.  Keep records of your actual expenses and keep the 1099-Q with your 2020 tax records.  You are not required to enter a 1099-Q on your tax return.

IRS 1099-Q Instructions