Yes. When you entered your Form 1099-INT, there was Box 2 that had the penalty amount. If you made both the interest and the penalty entry in your Form 1099-INT, then TurboTax would carry the figures to the appropriate location on your tax return. This would reduce your interest income by the penalty amount.
The interest income is on page one of the Form 1040, Line 2b and the penalty will be shown on Schedule 1, Line 18.
TurboTax Online:
Using the Tax Tools to 'Preview My 1040' to check your return:
- To find Tools:
- Sign into your TurboTax account and open or continue your return.
- Select Tax Tools in the left menu.
- You'll find Tools beneath Tax Tools.
- Select View Tax Summary
- Select Preview My 1040 (left)
TurboTax Desktop change to Forms mode to view.
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