No. Unfortunately, taking an early withdrawal from a 401k to purchase a house is not an exception to the penalty. (It is with a traditional IRA, but not a 401k) She should have a 1099R which must be entered and will be paying tax on the distribution from the retirement account.
To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.
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