The entire amount was returned to the Brokerage.
So now I need to reflect the 1099-R showing the distribution, and the tax so that was withheld so that the client is refunded the withholding. I have tried to use the rollover option, showing the amount in Partial, and as a complete rollover, but my IRA amount still shows as taxable on the 1040.
So if I fill out the 1099R and show the entire amount rolled over by clicking the box down in the 1099R worksheet Page 2 Line B1
I see the total amount on Line 4a of the 1040, but Line 4b is empty and the word Rollover appears next to the amount on Line 4a. See screen shots below
Is this not happening for you?