Hello, I'm having a strange situation with my credit union. I closed a CD (early withdrawal) on the first day of 2023, but all of the interest from that CD showed up on my 2022 1099INT. The withdrawal penalty was charged on the first day of 2023. I asked them if I would get a 2023 1099 with box 2 showing the penalty, and they said no, because there is no interest in 2023, there will be no 1099. So to get around that, I purposely opened another small CD in 2023 just to get over $10 of interest from this C.U. But I'm not hopeful they will put the penalty on that 1099-INT. How do I proceed if they don't, and don't offer to correct it? Can I still file electronically, or do I have to send all paper forms with proof of the penalty paid and their "error"? Is there a place to show this on Turbotax to where I can still file electronically safely? The penalty is significant, around $800. As of now my plan would be to just put it under Misc Income as a negative with a description.
Yes, you would report the penalty even though they are not issuing a 1099-INT. It's very important to keep your documentation should you need it later. Use the following steps to enter your penalty.
Yes, you would report the penalty even though they are not issuing a 1099-INT. It's very important to keep your documentation should you need it later. Use the following steps to enter your penalty.