Because we don't know what is on the Sched C, if this person has prior basis in the Traditional IRA, if that distribution is RMD or not, if the person is over 50 and you have the additional $1,000 and also $1,000 too much, or how the 1099-R appears for the distribution, I would refer you to the Instructions for 5329 and especially the section(s) where there is both contribution and distribution:

https://www.irs.gov/instructions/i5329#idm140008386956640