2021 401k covid hardship

[stotts2018]

I did a hardship withdrawal in 2021 due to covid19 and it was covered by the cares act. I withdrew 25,000...had them withhold 5,000 (20%). On the 1099r I received it has the withdrawal coded as a 1, when I enter it into turdo tax it is saying that I need to pay an additional 2,500 in on taxes. What do I need to do in this situation? 

[dmertz]

The deadline to receive a Coronavirus-Related Distribution was December 30, 2020.  A distribution received in 2021 does not qualify, so unless you have another exception to the early-distribution penalty, you are subject to the $2,500 penalty.

The $5,000 withheld for taxes is credited on Form 1040 line 25b.