Took a 403b loan and missed a payment. now being taxed as disbursement. do I have to pay the tax if there are no exceptions?

In Turbo Tax you can see if you can reduce the tax burden by using an "Other" category which I tried and it does reduce my tax burden, but is this correct? Will this trigger an audit?

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The exceptions can only prevent the 10% early withdrawal penalty. There are no exceptions to paying the tax owed on the withdrawal. Without an exception, you may pay the tax and if your were under age 59 1/2 at the time of the withdrawal, you must also pay the 10% early withdrawal penalty.