The effect of calling what you put back into the traditional IRA within the 60 day window is the same as if you'd made a traditional IRA contribution for an adjustment to your tax return. Both actions have the exact same effect to your bottom line of the tax return. In your case entering in that you made a rollover within the 60-day time frame is the correct thing to do. You will not enter a new contribution to the IRA. No form 8606 is required. Now if you had made a contribution as well as the rollover then you would enter both transactions in the program. Traditional IRA deductible contributions can only be made if you have eligible earned income on the tax return. Rollovers do not have this eligibility restriction.
