Early Withdrawl Penalty

[Ray1944]

As stated in a previous question, I got a 1099 INT for my cd for year 2023.  However, I redeemed redeemed and withdraw the amount before it mature.  I redeemed it in late December 2023 . My question is can I deduct the interest penalty for 2023 as they took out almost 3 months of last year interest (2023) with the amount that I got back.  My 1099 Int for 2023 shows the penalty on line 2 but I cannot see where I can show this penalty on the TurboTax instructions.

[DawnC]

Yes you can.   When you enter the 1099-INT, there is a box to check that says My form has info in more than just box 1.   When you click it, you will be able to enter the box 2 amount and deduct the early withdrawal penalty.   

[Ray1944]

After I have entered the early withdrawn penalty on line 2, do I have to go to the next question (Tell us if any of these uncommon situations apply) and check the box "we need to adjust the taxable amount"?

[DianeW777]

No, do not say you need to adjust the taxable amount.  TurboTax will carry the penalty for you to the appropriate location on the tax return (Schedule 1, Part II, Line 18). You can view the information by using the steps below.

On the menu bar on the left that shows. 

     

1. Select Tax Tools 
2. On the drop-down select Tools 
3. On the pop-up menu 
4. Select View Tax Summary 
5. On the left sidebar, select Preview my 1040 

@Ray1944