In Turbo Tax's review, it is showing a $1 penalty for "Early withdrawal penalty deduction." Is there a way to correct this, as I did not make any withdrawal?

[jake-seijas]

I need to remove this, since this $1 item the system added now forces me to pay $80 to file my taxes.

[ColeenD3]

Did you enter a 1099-R? If so, what was the code? Or, did you pull your money out of a CD early? It would be in Box 2 of your 1099-INT.

[jake-seijas]

Thanks, Coleen. Very helpful. I erroneously entered a small figure in box 2 on the 1099-INT that caused the issue.

[JoannaB2]

Yes, if no withdrawal was made or didn't receive 1099-R, the form needed to be deleted.  To delete a form 1099-R, if needed:

• In Tax Home Screen, click Tax Tools, then Tools.
• Under Tool Center, click delete a form.
• Under Review Form List, scroll down and delete the form, 1099-R.

Interest income is entered on form 1099-INT.  You may have to go back to the form 1099-INT and delete the amount on box 2.

The Form 1099-R is used to report profit-sharing or retirement plans, IRA's, annuities, pensions, insurance contracts, and other qualified retirement plans.

The Form 1099-INT is a form for interest income reported by financial institution.  The income is reported on Box 1 and Box 2 is early withdrawal penalty.