@TaxGuyBill

Perhaps you can provide me with a specific answer that I am looking for.

Assume that an 8915-E was filed for a 2020 tax return showing a disaster withdrawal of $100,000 and nothing was repaid before the 2020 return was filed or any other time in 2020 and nothing was repaid in 2021 either. No election was made to include all of the $100,000 in income in 2020 so $33,333 was included on the 2020 return, $33,333 was included on the 2021 return, and $33,333 is expected to be included on the 2022 return.

Taxpayer pays back the entire $100,000 to the retirement plan in 2022 after the 2021 return was filed.

Per the IRS instructions the $33,333 of income is not included on the 2022 return and $66,666 is available to be carried back to the 2021 and 2020 returns by amending them to remove the income from those returns.

When amending the 2021 return, does the 8915-F get amended by entering $33,333 on Part II Line 14?

If so, where is the entry made in Lacerte? Screen 13.1, Code 1357 where it says, "Repayment made before filing 2021 tax return" or somewhere else? I ask because of the statement "before filing" and this would be an amended return after filing the original 2021 return since the repayment was made in 2022. Perhaps this "before" is applied to the amendment and that this is still applicable because the 2022 payment was before the 2021 amended return? The statement that Lacerte generates for Form 8915-F, Part II Line 14 item 4 states, "Enter and repayments you made before filing your 2021 return."

Using this method does result in an amended return with the expected outcome - the 2021 income is reduced by the $33,333 that was previously included in the return, so it seems logical. So the question is really about the words "before filing your 2021 return."

Similar question for amending the 2020 return. Does the $33,333 carry back repayment amount end up on Part II Line 10? Same question about the use of the word "before" on the line that states, "Enter the total amount of any repayments you made before filing your 2020 tax return. But don’t include repayments made later than the due date (including extensions) for that return.

Or, does the carry back get handled some other way?