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Retirement tax questions

A "hardship" is just a reason the 401K administrator needs to issue an early distribution  and has no basis in/on an income tax return.    If the distribution doesn't qualify for an exception to the 10% penalty then you will owe that as well as the income tax on the amount withdrawn ... the 1099-R will have the correct code in box 7 and must be entered as such on the return.  

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