Recharacterization costing me tax dollars?

Can you help me and I'm sure others. I rolled over approx 40,000 to my roth from my taxable ira. The crash then reduced my total roth by over 50 per cent. Thus when Schwab recharacterized me back 2 months later the recharacterized amount approximated 20,000. If I'm correct my 1099 at the end of the year will show 40,000 as a rollover and 20,000 for the recharacterized amount. Resulting in me having to pay tax on 20,000. Is this correct? Dennis