I cancelled 2 CD's early and got early withdrawl penalties. My 1099-INT's list these in Box 2. Turbotax doesn't have a box 2 for entry. How do I enter these?

[PattiF]

Is the penalty reported in box 2 of a 1099-INT? Follow these steps:

• From the Federal menu, click on Wages & Income
• Expand the menu for Interest and Dividends
• Click Start/Revisit next to Interest on 1099-INT
• Either Add another 1099-INT or click Review next to one already reported on your return
• If starting from scratch, you may either import the 1099-INT or choose I'll type it in myself
• Check the box My form has info in other boxes (this is uncommon).
• Enter the Early withdrawal penalty in Box 2

[rogerandmaxinetaxes]

I cancelled 3 cds and received an early withdrawal penalty.  Is this penalty subtracted from the interest amount?  How is it reported?

[VolvoGirl]

@rogerandmaxinetaxes   Did you enter the amount in box 2?  It isn't directly deducted from interest.  It is an adjustment to income.  For 2022 the CD early withdrawal penalty goes on Schedule 1 line 18 which goes to 1040 line 10.

[AnnetteB6]

It is reported as part of your Form 1099-INT entry.  You will probably need to check the box on the screen saying that your Form 1099-INT has info in more than just box 1 in order to open up the other fields.

The early withdrawal penalty is not directly subtracted from your interest income and it is not reported on Schedule B.  Instead, it will be reported on Form 1040 Schedule 1 line 18 as an adjustment (subtraction) to your income.

@rogerandmaxinetaxes