The IRS requires that the rollover is shown on the return. A direct rollover is required to be shown but is not taxable.
The rollover is included in your total income, but it is not considered taxable income, for tax purposes.
The rollover from an IRA would be shown in Box 16a (as nontaxable) Form 1040. If the entire amount is rolled over (most often with Code "G" in Box 7 of the 1099-R), the line 16b remains blank (it means zero taxable amount) and the rollover would not be included in taxable income. (Form 1040A line 12a and b).
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