If you received a retirement distribution due to coronavirus-related early distribution in 2020 on account of hardship, you may choose to repay any portion of it within three years of receiving the distribution. Repayments reduce amounts subject to income and are not subject to any contribution limits.
If you made as payment before the due date of your 2020 return, the repayment reduces the amount included in income on your 2020 return. Alternatively, a repayment after filing your 2020 tax return, and the repayment is spread over 3 years, reduces the amount included in income on your 2021 return. You may need to file an amended 2020 return to reduce your income over the three-year period. Contact your financial planning professional to discuss if this applies to you.