529 withdrawal reporting

Hi

I funded (from after tax money) two 529s for each of my children. Each a/c was funded with $22,000 in Dec 2007 That is a total of 44,000 I withdrew all the money in 2009 Sept We have been filing married jointly.

I received two 2009 1099-Q forms Here is what they say box data

I don't know how to deal with this and it is the main reason I have been procrastinating on my taxes.

How to report this. I'd especially like to make sure I get some benefit in my taxes from these losses.

I use TaxCut

Thanks,

-Antony