The early withdrawal penalty is an adjustment to income so it will reduce your gross income which reduces your adjusted gross income, not your interest income. When you enter your 1099 INT into Turbo Tax, the early withdrawal penalty will automatically be reported as an adjustment to income on your Form 1040.
Your adjustments to income are shown on Schedule 1 of Form 1040 and will flow to your Form 1040 onto line 10.
After you enter your Form 1099-INT, you can use these instructions to check your Form 1040 for the adjustment:
- Log in to your Turbo Tax account
- click on "take me to my return"
- Click on "my account" tab at the very top of the screen
- Click on "tools"
- Click on "view tax summary"
- Click on "preview my 1040". This is part of a narrow white bar at the very top of the screen
- When your 1040 form appears, you will be able to scroll through and look at the individual line items.
- Click the "back" button when you want to return to your main Turbo Tax screen. The back button is part of a narrow white bar at the very top of the screen.
Your wire transfer fees are deductible as a business expense on your Schedule C if you file one. I do not know from where your post where you attempted to enter your wire transfer fees as an expense.
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