Get your taxes done using TurboTax

Since you repaid all in 2021 you can amend and carry back part of the repaid amount to cancel out the amount included in your 2020 taxable income. Please select "I repaid part of the distribution" and enter the amount.

"If you make a repayment after the due date of your 2020 return (including extensions) but before the due date of your 2021 return (including extensions) and you have spread the income over 3 years, include the repayment on your 2021 Form 8915-E. However, you may file an amended Form 8915-E for 2020 if either of the following applies.

• You elected on 2020 Form 8915-E, lines 9 and 17, as applicable, to include all of your qualified 2020 disaster distributions in income in 2020 (instead of over 3 years).

• You have spread the income over 3 years, the amount of the repayment exceeds the amount of your qualified 2020 disaster distributions that are included in income on your 2021 Form 8915-E, and you choose to carry the excess back to 2020. See the example below.

Example.

You received a qualified 2020 disaster distribution in the amount of $90,000 in 2020. The distribution was made on October 16. You choose to spread the $90,000 over 3 years ($30,000 in income for 2020, 2021, and 2022). On November 19, 2021, you make a repayment of $45,000. For 2021, none of the qualified 2020 disaster distribution is included in income. The excess repayment of $15,000 ($45,000 - $30,000) can be carried back to 2020. Also, instead of carrying the excess repayment back to 2020, you can choose to carry it forward to 2022." (IRS).

Line 18 instructions "Repayments made after the due date of your 2020 return (including extensions) but before the due date of your 2021 return (including extensions) will generally be reported on your 2021 tax return if you elected to spread the income over 3 years. However, you may have to file an amended return in certain situations. See Amending Form 8915-E, earlier." (IRS)