While you may be allowed by your plan to take a hardship withdrawal, all 401k withdrawals are always subject to regular income tax, plus a 10% penalty for early withdrawal if you are under age 59-1/2.
There are a few exceptions to the 10% penalty but the only one that probably applies to you is you can exclude the penalty on up to $1000 per year for a personal financial emergency. If you withdrew more than $1000, you will owe the penalty on the rest. See the list of exceptions here.
I made a withdrawal from my 401K to assist my son with the purchase of a home. I had the state and Federal taxes withheld. How do I indicate on my Turbo tax form that I am over 591/2 so the penalty is not added?
I made a withdrawal from my 401K to assist my son with the purchase of a home. I had the state and Federal taxes withheld. How do I indicate on my Turbo tax form that I am over 591/2 so the penalty is not added?
Is your date of birth entered correctly in the program? Turbotax should know automatically. If you turned 59-1/2 during the year, you may need to complete all the steps in the interview, don't just enter the 1099 and then exit and go somewhere else. At the end of the interview section there is a page that says "let's look for ways to avoid the penalty" and if you turned 591/2 in the middle of the year, there should be a check box to indicate you withdrew the money after that date.