Can I put the amount of money I used from my 401k for a down payment on a home in the "other reason" section?

[kenjhart2015]

I took money from my 401k to place a down payment on my home. It says I didn't pay enough in to begin with but I thought taking out for the purchase of a home wouldn't "hurt" you that bad when filing your taxes. I've never done this before so this is all new to me.

[DoninGA]

The withdrawal from the 401(k) account is entered as ordinary income on your tax return and taxed at your current tax rate.  If withdrawn before you were age 59 1/2 there is a 10% early distribution penalty assessed on your federal tax return as a tax liability.

The exclusion from the penalty on a first time home purchase is only for a withdrawal from an IRA and then only the first $10,000 is eligible for the penalty exclusion.  

[Opus 17]

You owe income tax plus a penalty, your overall federal tax on this is probably 32% or 34%, plus 3%-10% for your state.  (The state does not charge a separate early withdrawal penalty). You might have only had 20% withheld when you made the withdrawal.  So now the rest of the tax you owe is added to your overall tax bill and will reduce your refund or increase the amount of tax you owe.

[Opus 17]

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@DoninGA wrote:

The withdrawal from the 401(k) account is entered as ordinary income on your tax return and taxed at your current tax rate.  If withdrawn before you were age 59 1/2 there is a 10% early distribution penalty assessed on your federal tax return as a tax liability.

The exclusion from the penalty on a first time home purchase is only for a withdrawal from an IRA and then only the first $10,000 is eligible for the penalty exclusion.  

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For a 401(k) or 403(b), if the employee is separated from service with the employer, the age for the 10% penalty is 55, not 59-1/2.  

Some employers offer a hardship withdrawal, although whether a house counts depends on the particular employer's plan, so sometimes a current employee can make a withdrawal in which case the age limit is still 59-1/2.