1099-INT Box 2 Early withdrawal penalty not transferred to PA PA Schedule A Line 8

[js928]

1099-INT Box 2 Early withdrawal penalty not transfered to PA PA Schedule A Line 8

It appears correctly on 1040 Schedule 1 Line 18 Penalty on early withdrawal of savings

I'm using TT2022 Deluxe Windows Download version.

PA Schedule A Line 8 Other reduction adjustments is blank.

I can manually enter the information but I don't understand why TT ignores the data entered on the 1099-INT.

Thanks for any explanation you can provide.

[JamesG1]

See this Pennsylvania Department of Revenue website:

Pennsylvania considers the premature redemption of a certificate of deposit or a time savings account to be a disposition of property. Any forfeited interest penalty incurred may be used to offset the interest accounts from only the certificate or account that was redeemed (that is, the forfeited interest penalty may not be offset against other interest income). If the penalty exceeds unpaid interest accrued from the certificate or deposit, the excess should be reported on PA Schedule D as a loss from the disposition of property. This loss may be used to offset other gains, if any. If the interest paid exceeds the penalty, the excess is reportable as interest income.

At the screen Interest Income Summary in the Pennsylvania state income tax return, you may Edit the interest income by the amount of the early withdrawal penalty if the interest income from the account exceeds the amount of the early withdrawal penalty.

The early withdrawal penalty may not offset against other interest income in the Pennsylvania state tax return.

@js928