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You still need to report the gross distribution on line 15a from 1040,
but when you will determine the taxable portion of that distribution - you will consider $5,500 which you rolled over.So that amount will NOT be used to calculate taxable income.
However - please be aware that your rollover contribution will be reported separably to you and to the IRS on form 5498 IRA Contribution Information
Please verify if you have this form and if your rollover contribution is reported correctly.