My husband got a 1099-R for his 401k withdrawal however it included his loan draw from that which was used to buy first home purchase. The 1099 listed this amount in the taxable amount! I know I can do another form to show this amount was an exception however do I also subtract this amount when entering on the taxable amount? If I do that it gives us back almost $700 more but if not only about $200 by just using the exception tax schedule.