401k early withdrawal

[wilvi91]

I had to withdraw my contributions in order to avoid eviction and financial hardship due to employment being terminated and ineligibility to claim unemployment benefits. I was told I could avoid penalty because of that. I have reported already my 1099-R forms, but I don't know how to report that those amounts were used for that purpose. I'm considering to claim those amounts in the permissible withdrawals, but should them be the full amounts or amounts after taxes. Could you please advice? Thanks in advance.

[ThomasM125]

The gross amount before tax withholding would be what the penalty would be assessed on. Although early distributions from an IRA may qualify for an exemption from penalty if you are terminated and suffer economic hardship, that does not apply to early distributions from a 401-K plan. 

After you enter your Form 1099-R in TurboTax, you will see a list of reasons to exempt the distribution from penalty on the screen that says These Situations May Lower Your Tax Bill:

You can read through the list, especially where it says Learn More next to Other Reason to see if your distribution would qualify for exception to the penalty