You took a distribution, had tax withheld and paid, rolled the remainder of the money into your 401k. You will claim only the portion that was returned as a contribution. The taxes are on the 1099R box 4.
Let's clarify what you rolled back in. You could have rolled:
- The full amount minus taxes that you received
- The full amount by adding personal money from your pocket to cover the taxes paid
Following the steps above, you are entering the 1099-R information, full amount, just as boxes say, and then the rollover information, the actual amount rolled back.
Brokerages report your year end value of accounts to the IRS as well as the 5498 they send you both.
Keep your copies of what happened in a financial notebook, not with your taxes. This is a long game. I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, 5498, and 8606, if applicable.
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