Question 40 of 75. Paul's home was destroyed in Hurricane Florence and he qualified for a disaster distribution. He withdrew $95.000 from his IRA on September 30, 2018, which he included in his gross income on his 2018 tax return. In 2020, Paul was able to deposit $70,000 in his IRA. What is the tax treatment of the $70,000 deposit? The deposit reduces his 2018 distribution. He will filo a revised Form 8915-C and an amended return for 2018. The deposit will be treated as a fully-deductible IRA contribution on his 2020 tax return. The deposit will be used to create a credit on his 2020 rotum of the difference between his 2018 tax liability with the $85,000 distribution and what it would have been with only $25,000 taxable. The deposit is a repayment and does not change his tax returns. Mark for follow up