I closed an IRA CD. My bank charged me an interest penalty fee because I closed it out before the maturity date. Can I deduct the interest penalty on my taxes?

[kposey1028]

I am 65 years old.

[MargaretL · Accepted solution]

No, you cannot deduct interest penalty on 401K or IRA accounts, unfortunately.   

You can on your regular cd or savings account, that amount will be included on Form 1099-INT box 2.  You would report it as a regular, 1099-INT data entry:Federal Taxes>Wages and Income>Interest and Dividends>Interest on 1099-INT.