my 401k was more than $1,000 when I cashed it out. I took a $1,000 to fix my vehicle does that qualify for an exemption on the 10% tax?

[poshysparrow]

I only withdrew it because I was leaving that job

[MinhT1]

If you took out $1,000, this could count as a personal emergency withdrawal and will be exempted from the early withdrawal penalty.

Please read this TurboTax Help article for more information. 

[poshysparrow]

I took it all out to use it for the car repair which was 2549. I wasn’t sure if a $1,000 could still be wrote off.

[DoninGA]

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@poshysparrow wrote:

I took it all out to use it for the car repair which was 2549. I wasn’t sure if a $1,000 could still be wrote off.

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The distribution from the 401(k) is entered on your tax return as ordinary income and will be taxed at your current tax rate.

If the distribution was in 2024 then you should have received a Form 1099-R.  That form is entered on your tax return.