Yes. You will get a 1099R for the money you took from your 401k. If you did this in 2019 you will get that 1099R by the end of January/early February. It will have to be entered on your 2019 tax return.
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.
Gifts given to grandchildren are not deductible whether for school or some other purpose.
You did not mention the amount you gave them, so we do not know if you need to prepare gift tax forms for the gifts.
GIFTS
Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return. Money that you gave as a gift to someone else is not deductible for your taxes.
Turbo Tax does not support the gift tax form 709, but here is a link:
https://www.irs.gov/pub/irs-pdf/f709.pdf
https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N
https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-...
Is there some reason you think the distribution should not be taxable? You have already asked about this previously and received responses.
https://ttlc.intuit.com/community/retirement/discussion/closed-401k/01/985673
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
