Updated October 29, 2026. Quick answer: The Early Distribution Repayments Worksheet in Publication 590-B (2025) is the ten-line IRS calculation for the amount to subtract from your adjusted gross income on an amended return when you repay, in a later year, an early IRA distribution that the law lets you treat as a rollover. It multiplies the repayment by your IRA basis ratio and subtracts that share, because the basis part was never taxable.
What this worksheet is for
The publication lists the distributions it covers: “Early distributions whose repayments are treated as rollovers.” They are qualified birth or adoption distributions, terminally ill individual distributions, domestic abuse victim distributions, emergency personal expense distributions and qualified disaster recovery distributions. Timing decides how you report it: “However, if you make a repayment in a year following the year you make the distribution, you will need to amend the return for the tax year during which you made the distribution.” The publication then points to this sheet: “When you make a repayment in a year other than the distribution year, you must” figure the amount you must reduce your taxable income in the year of the distribution.
The ten lines
| Line | What it asks |
|---|---|
| 1 | “Total distribution amount” |
| 2 | “Current year repayment amount” |
| 3 | “Amount repaid in prior years” |
| 4 | “Total repayments. Add lines 2 and 3” |
| 5 | “Distribution amount not repaid. Subtract line 4 from line 1” |
| 6 | “Basis in the IRA” |
| 7 | “Value of the IRA at the end of the year” |
| 8 | “Divide line 6 by line 7. Enter the result as a decimal (rounded to at least three places). This is your tax-free/” taxable ratio |
| 9 | “Multiply line 2 by line 8” |
| 10 | “Subtract line 9 from line 2. Reduce your AGI by this amount (in addition to any other changes you make) on” your amended return |
Why the basis ratio is there
The publication explains the ratio in one sentence: “The tax-free/taxable ratio is the fraction arrived at by dividing the IRA’s basis by the value of the IRA at the end of the year.” It adds the purpose: “This ratio is used to determine how much of the distribution you are repaying was taxable when distributed.” Line 10 is the repayment minus the part that was return of basis, so only the taxable part lowers income.
Where the answer goes
The publication says “You correct your taxable income for the year of the distribution by filing an amended return (Form 1040-X).” It gives the entries: “Enter in column A, on line 1 of your Form 1040-X, the amount of your AGI on your original return or the most recent amended return, if applicable.” “In column B, enter the amount you’re decreasing your income and enter the correct amount in Column C.” The Form 1040-X instructions agree on the roles of the columns: “Column A. Enter the amounts from your original return, unless any of the following apply.” “Column B. Enter the net increase or decrease for each line that you are changing.” The line-by-line walk through that form is on the Form 1040-X lines 1 to 3 page.
An example with invented numbers
Illustration, not an IRS example. A $10,000 qualifying early distribution was taken in an earlier year. This year the owner repays $4,000, having repaid $1,000 in a prior year. The IRA has $2,000 of basis and is worth $40,000 at year end.
| Line | Entry | Amount |
|---|---|---|
| 1 | Total distribution amount (invented) | $10,000 |
| 2 | Current year repayment amount (invented) | $4,000 |
| 3 | Amount repaid in prior years (invented) | $1,000 |
| 4 | Total repayments, line 2 plus line 3 (computed) | $5,000 (computed) |
| 5 | Distribution amount not repaid, line 1 minus line 4 (computed) | $5,000 (computed) |
| 6 | Basis in the IRA (invented) | $2,000 |
| 7 | Value of the IRA at the end of the year (invented) | $40,000 |
| 8 | Line 6 divided by line 7 (computed) | 0.050 |
| 9 | Line 2 times line 8 (computed) | $200 (computed) |
| 10 | Line 2 minus line 9 (computed): reduce AGI by this | $3,800 (computed) |
The ratio is $2,000 divided by $40,000 and equals 0.050, so $200 of the $4,000 repayment is basis and $3,800 is the amount that lowers AGI on the amended return. Line 5 is shown because the sheet asks for it; it does not enter lines 8 to 10.
Same-year repayments
The publication separates the same-year case: “Generally, if you make the distribution and a repayment in the same tax year, you can report the amount of the distribution, the amount of the repayment of the distribution, and if the amount of the repayment is less than the amount of the distribution, figure and report the taxable portion of the distribution on Form 1040, line 4b.” The publication states that case as the general rule, and it places the repayment on the distribution year’s own return rather than on an amended return, so this sheet is for the later-year repayment.
Edition
This page reads Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs), the file irs.gov served on 2026-10-29 (sha256 in the kit data). Line numbers and letters belong to that edition, so check the label printed on the worksheet in your own copy before you follow a line reference.
Common mistakes
- Filing an amended return for a same-year repayment. The publication reports that case on Form 1040, line 4b, with no amendment.
- Using the year-end value of the wrong account. Line 7 is the value of the IRA at the end of the year, matching the basis in line 6.
- Multiplying line 1 or line 4 by the ratio. Line 9 multiplies line 2, the repayment made this year.
- Treating every IRA withdrawal as repayable. Only the early distributions the publication lists are treated as rollovers when repaid.
Related: Form 5329 Part I, early withdrawal penalty exceptions, and total basis in traditional IRAs.
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Answer againSources
- Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs): https://www.irs.gov/pub/irs-pdf/p590b.pdf
- Instructions for Form 1040-X (Rev. December 2025), Amended U.S. Individual Income Tax Return: https://www.irs.gov/pub/irs-pdf/i1040x.pdf
Read from the IRS documents linked above on October 29, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.