Taxes were taken out of my Qualified Disaster Withdrawal from my 401k, so why am I paying taxes on it again?

Of the $33,348.03 withdrawn, Federal withheld $3,334.80 and State withheld $2,667.84. Why am I being taxed more? I'm certain I put in the Federal Withheld and State Withheld amounts in that section while I was filling out the forms, but I was still asked if I wanted to pay all the taxes now or spread over 3 years.

Even looking at the final filled out form after filing, I can't see where it mentions anything about taxes already paid, only that it incorrectly shows the full amount of $33,348.03 as what I took instead of the $27,345.39 that I actually took once the amounts for State and Federal were withheld from the withdrawal.

(I realize I should have thought of this and asked before filing, but oh well...)