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.
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, 10 months ago by dienerte.