can I get credit and how for the distribution without paying taxes on the entire amount?
The "correct" root answer to your question is no. A withdrawal from a traditional IRA or 401(k) is taxable income with no exceptions. Period. However, situations that allow for an early withdrawal will exempt you from paying the 10% early withdrawal penalty if otherwise applicable. But the withdrawal itself is always taxable income and it does add to your AGI in the tax year of the withdrawal.
So the penalty can be waived. But the taxability of the money is never waived.... at least it never has been yet.
Finally, whatever you spend the money on "may" qualify for a tax deduction or exemption of some type. But the withdrawal itself is taxable income as reflected on the 1099-R you received for that withdrawal.
