How to handle 1099-MISC for proceeds from a lawsuit to recover the lost principle from an investment

[ThisIsSoTaxing]

I had an investment in my IRA with a company that went bankrupt.  I subsequently recovered some of that loss through a lawsuit.  The law firm that I used deducted their fee from the proceeds and sent me the rest of the money.  I deposited all of the money I received back into my IRA along with a letter indicating that the money is to help replace lost principle from the investment.  I need assistance with how to enter all of this into TurboTax correctly so that I do not have to pay tax on any of this money.  The 1099-MISC that I received shows an amount that represents what I reinvested into my IRA plus the law firm's fees.   For the purpose of discussion, let's say the check was for $100,000, and the legal fees were $20,000 which left me with $80,000 to invest back into my IRA.  When I entered the 1099-MISC into TurboTax, the running estimate of the taxes I will owe went way up.  What do I need to do for TurboTax to properly reflect that I don't owe any taxes on the lawsuit proceeds?

[ThisIsSoTaxing]

Here are a couple more relevant facts.  The amount reported on the 1099-MISC represents a recovery of funds lost in a fraudulent investment within an IRA.  The award is a return of capital.  No portion of the award includes interest or punitive damages.  The law firm was paid on a contingency fee basis.  None of the fees were paid out of pocket.