Retirement tax questions

That's not an exception.

 

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.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-o...

 

When you enter the 1099-R for the withdrawal, you should be asked about exceptions you might qualify for.