The form is not to pay 1/3 of the amount left after the repayment.
It splits the distribution into thirds and then reduces the first 1/3 by the repayment.
It's great to have it this way because I can repay the 1st 1/3rd this year, the 2nd 3rd in 2021 and the 3rd 3rd in 2022 which is the intent of the tax law that was enacted. It not only splits the taxable amount into thirds but also gives me three years to repay the taxable amount of the withdrawal.
PLEASE download the 8915-E form and fill it out manually. It will help you understand how it works.
Assuming you had no other disasters (previous years), you will have numbers in 3a, 3b, 4a, 4b, 15, 16, 17, 18 and 19. Nothing else so it's pretty simple to do.
If you want to pay the most taxes this year (and less in subsequent years), CHECK the box (you DON'T want to split) and enter the full distribution amount on line 17 (the same that is on line 16).
Line 18 will be what you repaid and line 19 will be the net ($7,723).
If you do this, you will owe taxes THIS YEAR on $7,723.
