I am using TaxCut basis to file, and don't know how to enter the amount we took from a 529 not used for education expenses. It asks if you received a distribution from a coverdell or QTP plan and did NOT use it for educational expenses. I checked yes. Then is talks about the 10% penalty. Then it asks to enter the total amount that can be excluded. I put $0. Did I do this correctly?

It sounds correct, but I cannot be sure without looking at the documents.