Thank you for this form instructions.  I just read the part about repayment and this is what I gathered from it.  Somebody tell me if I am right or wrong.  I record all payments she makes and they come off the taxable income each year she makes them.  So for 2020 she would have to pay taxes on 1/3rd of it (since no repayments have been made).  Then if she makes payments during 2021 that amount to the $$ of the 1/3rd she will have no taxable distribution that year.  So if she does that each year she can adjust off the taxable 1/3.  But what about 2020?   How can she avoid the taxable income on the first third?  She is just getting back on her feet and doesn't want to pay the taxes on it right now.