The federal taxes withheld is only an estimate. There is not a exception to the early withdrawal penalty when using a 401(k) for a new home purchase. Only from an IRA.
There is no exception for a hardship withdrawal.
The federal taxes withheld will be entered on your tax return as a tax payment on your Form 1040 Line 25b. The taxable amount of the distribution will be entered on your tax return as ordinary income.
To enter, edit or delete a form 1099-R -
Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R
