I just did a dummy return with 3 distributions, all funds spent on Higher Education.
12,000 with earnings of 11,000 on 1,000 Spent 12,000
10,000 with earnings of 7,000 on 3,000 Spent 10,000
8,000 with earnings of 6,000 on 2,000 Spent 8,000

Lacerte showed a Worksheet with 24,000 distributed earnings and zero taxable.