Retirement tax questions

Yes, you are interpreting that correctly.  You will enter your $25,000 repayment for 2022, on your current return.

And then as Per DanaB27 above,

For the 2020 tax return:

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
4.  On the "Your 1099-R Entries" screen click "edit" next to the Form 1099-R for the Covid distribution
5. Continue until the "Did you repay any of this distribution" screen and select "I repaid part of this distribution" and enter 1/3 of the distribution amount as repaid on the next screen

For the 2021 tax return:

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. Click "Continue" on the “Your 1099-R Entries​​​​​​​” screen
5. Answer "Yes" to the "Did you take a disaster distribution in prior years or repay…" screen
6. Answer "Yes" on the "Did you take a 2020 Qualified Disaster Distribution" screen
7.  Check the box next to "If this was a Coronavirus-related distribution reported in 2020 check here" and enter your information.
8. Enter the 1/3 of the distribution amount as repaid on the "Did you repay any 2020 Qualified Disaster Distribution in 2022?" screen

These amendments will record and correct your prior year repayments.

Click here for a video on "How to Amend your Tax Return?"

Click here for additional information for filing amended tax returns.