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liantay
Returning Member

early withdrawl penalty for a 2 year bank CD account

Hi,

I have a two year bank CD account open in June 2021 and to be matured in June 2023.  I closed it in January 2023 with the early withdrawl penalty of 180 days of interest.  Therefore party of the penalty amount is from the interest earned in 2022 and part of it is from the interest earned in 2023. 

Will the penalty amount be shown in 1099-INT BOX 2 of year 2022 or of year 2023? 

Will the amount be split to BOX 2 of year 2022 and of year 2023?

 

Thanks in advance. 

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1 Reply

early withdrawl penalty for a 2 year bank CD account

It should be on your 2023 1099 next year.  

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