If I understand you correctly, you made the early withdrawal in 2024. If so, the penalty will not be on your 2023 Form 1099-INT because you didn't pay it in 2023. You paid it in 2024. For the same reason, you cannot deduct the penalty on your 2023 tax return. You will have to deduct it on your 2024 tax return because that's the year that you paid it. You should get another 1099-INT for 2024 showing the early withdrawal penalty, even if it doesn't show any interest. You will be able to enter that 1099-INT in your 2024 tax return.
