It is not fully taxing the entire amount of distribution.  Only a part of it.  It is increasing her total distribution by $6536.00.  I do not understand why she has to repay the amount.  The IRS said that the distribution could be taxes every year for 3 yrs. by 1/3 percent of her total distribution or death benefit and I cannot get the form to do anything right.  The 1099R is for $61,260.00 for 2020 it was taxed at $20,420.00 and the same amount in 2021.  So I do not understand how if she has to pay back why it is adding the $6536 instead of the $20,420.00 and this is the 3rd year why is it not letting her get her third year?