Tax deductions can be taken for accidents including auto accidents under certain conditions. You would have to itemize on your tax form. The problem is that willful negligence would disqualify you from getting a deduction if it was found that drinking played a role in your accident. From your question it appears that it does. You also have to first report the accident to your insurance company and whatever amount they did not cover, then you can deduct from that. However, it appears you are disqualified from doing that.

Hardship withdrawals from 401K are permitted but they must fall under certain rules. These type of withdrawals permit you to take money out without getting hit with the ten percent tax penalty before age fifty-nine and a half.

The only rule I can see applying in your case would be a large medical bill because of the accident. However, your question does not mention anything about medical bills.

There are tax deductions for legal fees but not for auto accidents.

Actually an application for hardship and being allowed to withdraw the 401k funds early doesn't necessarily negate the 10% penalty if you used the funds to pay for your personal legal fees/fines. Any medical portion may qualify, but you'll need to meet the medical threshold and only that portion may be free from the penalty.

You really should consult with a competent tax professional this year to be sure you report and record this properly.