Thanks for your reply.
The earnings should show on the return as other income and the 10% penalty should also show up on Form 5329. I could make it work one way, by entering the earnings as the total distribution and entering a code 3 for a Coverdell, which it wasn't. After talking to a lacerte rep, I gave up and manually listed it as other income and entered it manually in the 5329.
Screen 14 > Education Distributions (1099-Q) > (1) Gross... (2) Earnings (3) Basis and (5) either 1 or 2 yields (3) showing as income (Schedule 1 line 8 as QUALIFIED TUITION PROGRAM EARNINGS and on 5329 for the 10%
If that did not work for you, what were your numbers?