In looking at other posts, for your situation, it appears that you enter the information as it exists on the 1099R form, when you get to the section that asks "What did you do with the money ...", select "moved the money to another retirement account (or returned it to the same retirement account)".
In the next question you are asked to "Choose which of the following applies" to which you reply "rolled over all of the money to another traditional IRA or other retirement account (or returned it to the same account)". This appears to nullify the taxable income.
In my situation where I have both the reversal and a Roth conversion, TurboTax tells you to treat as separate transactions and create two 1099R forms and allocate the numbers so that the combined total of the two new 1099R's matches the original 1099R.
