I had an early withdrawal penalty from an interest-bearing Certificate of Deposit (CD). Can I deduct the penalty from my interest income? If so, what "reason for adjustment" should I use?
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The entry will deduct the penalty from income on line 10 of the Federal 1040 tax return. With the following method, no reason is required.
Follow these steps:
The entry will be found on line 18 Part II of Schedule 1 Additional Income and Adjustments to Income.
The entry will deduct the penalty from income on line 10 of the Federal 1040 tax return. With the following method, no reason is required.
Follow these steps:
The entry will be found on line 18 Part II of Schedule 1 Additional Income and Adjustments to Income.
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