There is no box 2 or penalty listed on the 1099 you got from the bank? Better check with the bank so you have the right amount. Then in Turbo Tax, you need to check the little box that says my form has more boxes and box 2 will open up for you to enter the amount.
You need to check the box that says My form has info in other boxes on the Form 1099-Int entry screen and then you will see the box where you can enter your early withdrawal penalty:
Thank you for your quick response.🙂
The problem is that
I feel uncomfortable reporting this on the return as an entry coming from Box 2 on the 1099-int form when it says 0. I thought there was another place I could make the entry. The bank says they don't report early withdrawal penalties.
I am certain of the early withdrawal penalty amount. I reviewed all the accrued interest from the bank by reviewing all my statements and the total matched what was on the 1099-int. The penalty amount was one withdrawal which showed an additional amount as the penalty.
It is an adjustment to income. It is not part of your itemized deductions. The CD early withdrawal penalty goes on Schedule 1 line 18 which goes to 1040 line 10. It will directly reduce your income.