Should I request a new 1099-R with split rollover money?

Q: re $2k 1099-R "distribution." Rolled $1K from 401k to Indiv. IRA (diff. trustee) but a direct T-toT transfer. $1000 stayed w/ original trustee of my pretax 401k but converted to a new Indiv. Roth (non-401k). Code in Box 7 is "G." TT is asking me if I converted it to a Roth? I did but only half of it. What should I do...say "yes" or "no?" Also, why are direct Trustee-to-Trustee rollovers of pretax money showing up in the Summary area of Gross Income even if it won't show up on the 1040 as taxable income?!? I need to keep my Gross income under $106,000 to prevent Medicare premiums from increasing. The extra $1,000 pretax direct rollover is through me over the $106,000 Medicare limit. I am hoping this is only in TT and the $106,900 doesn't show up on the 1040 anywhere. Thanks