topic 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? in Retirement tax questions

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 — Sat, 01 Jun 2019 06:50:33 GMT

I am 65 years old.

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

MargaretL — Sat, 01 Jun 2019 06:50:35 GMT

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.