topic ?? Penalty for Early Withdrawal - online version in Get your taxes done using TurboTax

?? Penalty for Early Withdrawal - online version

user17710834768 — Sat, 14 Feb 2026 15:56:44 GMT

On my overview of refund shows "penalty on early withdrawal of savings" as part of my deductions. I'm assuming this is actually my portion of the one time senior $6000 addition to the standard deduction as it's added. Just a mislabeling on the online premier version.

Anyone able to confirm? Don't see an easy way to confirm with Intuit.

Re: ?? Penalty for Early Withdrawal - online version

VolvoGirl — Sat, 14 Feb 2026 16:04:48 GMT

Early withdrawal of savings penalty comes from interest 1099 INT box 2. The Senior Deduction is not part of your Standard Deduction. It is separate. Check your 1040 line 13b.

Re: ?? Penalty for Early Withdrawal - online version

DoninGA — Sat, 14 Feb 2026 16:04:49 GMT

No, the additional deduction of $6,000 for seniors would not trigger a withdrawal penalty for savings. The senior deduction is reported on the Form 1040 Line 13b.

You need to review the Form 1099-INT you entered and make sure that you did not enter an amount in box 2 of the form (assuming the box 2 was not used on the original 1099-INT)

To report interest income received -

Click on Federal Taxes (Personal using Home & Business)
Click on Wages and Income (Personal Income using Home & Business)
Click on I'll choose what I work on
Under Interest and Dividends
On Interest on 1099-INT, click on the start or update button

Re: ?? Penalty for Early Withdrawal - online version

user17710834768 — Sat, 14 Feb 2026 16:46:01 GMT

Yes, understand and I did recheck all my entries. It is not listed as income. It is included and added to the standard deduction amount (so listed as a deduction) - therefore I think it is just a mislabel in the online version. Just wanted to check so see if anyone else noticed the issue before filing. Will try to see if I can upload snapshot of that section

Re: ?? Penalty for Early Withdrawal - online version

VolvoGirl — Sat, 14 Feb 2026 16:53:18 GMT

There's nothing wrong with that. That is just a review and summary screen. You are getting the Standard Deduction 17,750 on 1040 line 12e. The savings penalty you get credit for it on Schedule 1 line 18. The Enhanced Senior Deduction is listed separately on 1040 line 13b.

The withdrawal penalty was included in your 1099INT box 1 as income. So you get a deduction for the penalty.

Re: ?? Penalty for Early Withdrawal - online version

user17710834768 — Sat, 14 Feb 2026 16:52:04 GMT

Thanks - meant to add it was on the summary versus the actual forms to be submitted. - just called me to do a double take. I don't think you can actually see/print the worksheets on the online version until you pay and file.

Re: ?? Penalty for Early Withdrawal - online version

VolvoGirl — Sat, 14 Feb 2026 16:54:38 GMT

You can preview the 1040 and schedules. Before filing you can preview the 1040 or print the whole return
https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160