Early withdrawal penalty

Home Fairmark Forum Taxation of Investments Early withdrawal penalty

Viewing 5 posts - 1 through 5 (of 5 total)
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  • #3110
    Melody
    Participant

    Last year I opened a 5 year CD with my credit union. Pretty soon they had another CD offer with much higher interest so I closed the 5 year CD and paid an early withdrawal penalty of about $1500 which is stated in box 2 of the 2018 1099-INT form. I am not itemizing my tax return. Just checking here. Is there any way to mitigate this early withdrawal penalty pay on my taxes or deduct it anywhere? Doesn’t seem like it. Doing my taxes via TurboTax and just entered this, thot I’d check in with you.

    Thanks. Melody

    #3112
    dienerte
    Participant

    Melody – The early withdrawal penalty can be used as an adjustment to income on Schedule 1 of Form 1040.

    • This reply was modified 2 years, 6 months ago by dienerte.
    #3114
    Melody
    Participant

    Thanks. I’ll look for it. Minie

    #3122
    snargle
    Participant

    Look for Line 30 on Schedule 1 of the 2018 Form 1040.

    • This reply was modified 2 years, 6 months ago by snargle.
    #3124
    dienerte
    Participant

    I don’t use TurboTax so I cannot direct you (Melody) to the entry point, but if TT is anything like the TaxSlayer Pro program I use, it will be under the general category of adjustment or reduction to income and end up as Snargle indicates.

    • This reply was modified 2 years, 6 months ago by dienerte.
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