Calculating Sch 1, line 8z, "Qualified Tuition Program Earnings"

How does Lacerte calculate the amount reported on Form 1040, Schedule 1, line 8z described as “Qualified Tuition Program Earnings”?  Based on the inputs I have made from Forms 1099-Q and 1098-T, I cannot determine the amount Lacerte has computed.

Situation:

A MFJ IRS Form 1040 with 2 University attending dependents.  Forms 1099-Q and 1098-T received. 

Father is named “Recipient” on Form 1099-Q and Lacerte Input screen 14.3, box “Recipient is not the designated beneficiary” is checked as his children are the “Dependent” Beneficiary students.  Box 6 on Form 1099-Q is also checked for same.

The following codes are filled in on Screen 14.3 based on the Form 1099-Q:

12 . . . First Name

13 . . . Last Name

14 . . . SSN

Qualified Expenses

143 . . Used amounts provided from university office statements or should it be box1 of Form 1098-T?

Form 1099-Q

301 . . (1) Gross distribution

302 . . (2) Earnings

303 . . (3) Basis

304 . . (4) left blank

            (5) a “2” code

1. 851. . UT                          

 The rest of screen 14.3 was left blank.