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Returning Member
posted Mar 27, 2024 4:38:38 PM

Told: you have a penalty on early withdrawal of savings and need to upgrade to deluxe

I received the alert when I finally finished federal and state and was on the last review to file "You have a penalty on early withdrawal of savings." and I need to upgrade to deluxe for $118. I have no idea what this penalty could be. I did not receive a 1099R, I do not have an IRA or Roth IRA, I have not made any withdrawals from my 403b. I did receive at 1099INT but only box 1 had any information. What could this be about?

0 2 3012
2 Replies
Level 15
Mar 27, 2024 7:20:46 PM

Go back to where the 1099-INT is entered in TurboTax and make sure that you did not accidentally enter something in box 2. Box 2 is where a penalty for early withdrawal of savings would be.

 

Level 15
Mar 27, 2024 10:40:11 PM

It was for the penalty you paid at the bank like if you cashed in a CD early.  You can deduct the penalty from your income.  It's a good thing.  If you don't want to upgrade you can delete the amount in box 2 of the 1099 INT.