Yes, that is my understanding, if you want to avoid paying tax on the distribution on your 2021 tax return. After that date, you would have to claim it in 2022, if you only pay back two of the 1/3 amounts. If you pay back the remaining balance of the Covid distribution after April 18, you would need to amend your 2021 filing to claim the refund, and you would also avoid paying the related tax on your 2022 return.
