It is better to enter all three 1099-Rs because the IRS gets copies and might question the absence of one.
Since the 1099-R ($25,079) with the 0 taxable income has code G (rollover), it should not be included in either your federal or state taxable income.
If, for some odd reason, it is being included in state income then delete the 1099-R from the federal side. If the IRS sends you a letter just explain that it was a rollover and has no effect on the return.
If the rollover distribution is being included in your state income, please let me know what state so I can report the situation to our developers. Thanks!
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