I think you need to delete that 1099-R and re-enter it. It doesn't sound like it is properly reported. I am not sure what you mean when you say you chose ''non-taxable''. You don't get to choose whether or not the distribution is taxable as TurboTax will use the information you enter to determine the taxable amount. Enter the 1099-R exactly how you see it.
Since RMDs were waived for 2020, no part of the distribution was actually an RMD even though it was taken with the intention of satisfying an RMD. In TurboTax, indicate that the distribution was not an RMD. Indicate that you moved the money to another retirement account (or returned it to the same account), then indicate how much of the distribution you returned to the IRA. TurboTax will include the entire gross amount on Form 1040 line 4a but exclude the amount rolled over from the amount on line 4b. TurboTax will also include the word ROLLOVER next to the line.
If you did not substitute other funds for the amount withheld for taxes so as to complete the rollover of the entire gross amount of the distribution, the amount of the withholding remains distributed, not rolled over, and subject to tax; it's too late to complete a rollover of that portion of the distribution. If the overall tax liability determined on your tax return is less than your total withholding, including the amount withheld from the IRA distribution, you'll get a tax refund.
Only the taxable amount on Line 4b is included in your income so only this amount will be factored into your income to determine eligibility for any future relief Congress provides. If you returned all of the RMD, there is zero net tax effect, but the 1099-R has to be entered if you received it. No one had an RMD requirement in 2020. Some chose to keep them anyway (they are still taxed if you kept the RMD) and others returned them. If 100% was returned, there is no tax. The rollover question is not the same as the question regarding covid distributions that were repaid. @Mike610
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