payed off my house loan with a withdrawl from my 401k. no early withdrawl penalty since I was 64 yrs old when I did this. Was on an Obamacare plan from healthcare.gov since I was laid off and received unemployment for the whole of 2020 and 16468.20 tax credit for the health insurance. Turbo tax says that I am responsible to pay back the 16468.20 since they are counting the 401K withdrawl as income. Do I have any recourse to this?
I did have federal and state taxes taken out when I made the 401K withdrawl