I realized that I was only considering Earnings and not the whole Distribution. According to the tax code, the whole distribution is potentially taxable if there are not enough QHEE's to absorb it all. I think that's flaky; the cost-basis part of the distribution was already taxed when it was contributed. Anyway, my solution was to override the numbers to make them what I thought they should be. Not the best idea, I know, but it did get the taxable part down to a more reasonable level.