Yes. The early withdrawal penalty is an adjustment to income so it will reduce your gross income which reduces your adjusted gross 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.
Please refer to the following FAQ for instructions on how to enter your Form 1099-INT. https://ttlc.intuit.com/replies/3300478
After you enter your Form 1099-INT, you can use these instructions to check your Form 1040 line 30
- 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.
