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@lsteffens wrote:

I have a taxpayer that took a $180,000 Covid Distribution.  He has repaid $90,000.  In my mind, his taxable income from the distribution for 2020 should be $83,333.  $80,000 didn't qualify as a Covid Distribution since the limit was $100,000.  Of the $100,000 that qualified, he paid back $90,000.  The remaining $10,000 should be spread over three years, with $3,333 being taxable each year.  The software is only showing $80,000 as being taxable.  I even tried entering it as if two 1099-R's had been issued, one for $100,000 and one for $80,000.  I showed $90,000 of the $100,000 repaid, but I'm getting the same result of only $80,000 being taxable.  What am I missing here?

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You're missing the order of operations.  Just follow the flow on Form 8915-E.  The $100K gets spread over 3 years BEFORE the repayments are applied.  So $33,333 would be taxable in 2020 without a repayment.  The repayment gets applied to the current tax return first so it offsets all of the $33K income.  The remaining repayment is carried forward.  That just leaves your non-COVID distribution of $80K taxable in 2020.  Nothing taxable in 2021.  $10K taxable in 2022 (unless repaid by then).