Where do I enter a bank interest penalty for early withdrawal of savings? Can I just deduct this penalty from my interest earned from same bank?

It's entered on the same screen as normal bank interest.  Make sure you check the box that says "My form has info in more than just box 1" (see screenshot).  Box 2 is for early withdrawal penalty.

I don't see a screenshot.

This is a very old thread and the screenshots did not migrate over when they changed the forum in 2019.   I don't use the Online version so I don't know how the screen looks.  It used to be.....Check the box below box 1 that says "My form has info in more than just box 1."

Enter the early withdrawal penalty in box 2.

Here's is a screen shot for 2018 online.  But I don't think it is the same now

I am using desktop. I entered the penalty in box 2 but don't see another box to check. Something popped up showing the difference as tax free interest. $371-228. Not something I want to spend hours on, but I might try a negative number..

It looks a lot different now for 2023. Thanks for trying to help. I will look at again tomorrow.

What are you trying to enter?  I have the Desktop program.

You click the little box and all the other boxes pop up on the screen.  After you enter box 2 for the early withdrawal penalty that's all.  There isn't another box to check.  Just hit continue in the bottom right.