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starbright1200
New Member

Claimed interest income in 2016, paid it back in 2017. Will I claim as a loss for 2017?

paid interest and claimed it on 2016 taxes, now 2/2017 i had to pay that interest back due to cancelling a certificate of deposit early. will i be able to deduct it as a loss for 2017?
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GinnyF
New Member

Claimed interest income in 2016, paid it back in 2017. Will I claim as a loss for 2017?

The early withdrawal penalty on your certificate of deposit withdrawal in 2017 will be reported to you and to the government on the Form 1099 INT for 2017. This reporting will allow you to claim this lost interest on your 2017 tax return.

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GinnyF
New Member

Claimed interest income in 2016, paid it back in 2017. Will I claim as a loss for 2017?

The early withdrawal penalty on your certificate of deposit withdrawal in 2017 will be reported to you and to the government on the Form 1099 INT for 2017. This reporting will allow you to claim this lost interest on your 2017 tax return.

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