We took a withdrawal from our 401k due to hardship caused by unemployment. How do we reflect this in our tax return?

[KatrinaB]

If you just took a loan on your 401-K funds then you do not need to report this on your tax return. If you withdrew money that is not going to be repaid then you do need to report it. In this case, you should have received Form 1099-R. This is an early withdrawal and is subject a 10% penalty, in addition to income tax, unless you qualify for an exception. Unemployment is not one of the IRS approved exceptions. Please view the IRS link below to see a full list of exceptions.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

Please follow the instructions below to enter this form on your tax return.  

1. Open (continue) return if you don't already have it open.
2. Inside TurboTax, search for 1099-R or 1099R (lower-case works too) and then select the "Jump to" link in the search results.
3. Answer Yes on the Your 1099-R screen, then click or tap Continue.
   • If you land on the Your 1099-R Entries screen instead, click or tap Add Another 1099-R.
4. Select how you want to enter your 1099-R (import or type it in yourself) and then follow the onscreen instructions.