Because you took the deduction and did not use the distribution for qualified educational expenses, you will have to report the amount. In TurboTax, in the Virginia state tax return section, you will see the adjustment under Virginia 529 or ABLEnow Distribution or Refund.
In that section it tells me of the amount of the refund from my federal return. I check none of the above since they do not apply to exclude this from my income. Is there any were else I have to report the amount refunded that did not get taxed by the federal goverment but I took prevois virginia state decutions on?