Because the tax code defines it as income. The tax code also defines the rollovers as *nontaxable* income. TurboTax shows the total of all gross amounts to indicate that the total amount entered, not necessarily the amount that is taxable. The nontaxable income has *no* effect on your tax return, but the IRS requires it to be reported, constituting a legal statement by you that the rollovers were indeed completed as reported on the Forms 1099-R.
