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Question About Box 2 EWP On The 1099 Form

happyharold4
  |     |   388 posts since 2022

I've never had an early withdrawal penalty before. On my 1099 box 1 is interest income and box 2 is the ewp. When I add up the YTD interest on all my accounts and add in the ewp for the closed account it equals the amount on line 1 for total interest paid---So my question is what do I do with the the amount in box 2. Thanks

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Answers
Steve58
  |     |   459 posts since 2018
If you are using tax software, just enter the complete 1099-INT for that bank and the interest and EWP will be placed  in the correct place.

On the 1040 form, the interest will be summed into line 2A. The EWP will show up on line 10 (Adjustments to income from Schedule 1, line 26).

Steve
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Ltssharon
  |     |   471 posts since 2020
Thanks Steve 58. For the last 15 years HR block did my taxes in person. But last year it costs $700, so this year I am trying HRBlock free myself online. Hopefully it will work as you described, and handle box 2 and some other stuff on its own. Since it is free it is worth a try. Just in case anyone else out there wants to try HR block online, here is the link: https://www.hrblock.com/lp/tax-filing/?otppartnerid=9009&campaignid=ps_mcm_9009_7004_fy24_lob-gct_104_p07_a08_71700000089788814_58700007604057677_h%24r+block&gclid=7c218d6b62ad1554d658e8aafe624141&gclsrc=3p.ds&msclkid=7c218d6b62ad1554d658e8aafe624141 Oh, the help chat box said that to save and exit you hit a button in the upper right corner. Nope, tap the 3 or 4 little lines in the upper left, scroll down on the pop up box til you see something like "save and exit". I immediately ran into this disparity, so I almost quit.
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RickZ
  |     |   218 posts since 2010
Are you sure your calculations are correct because that isn't how it should be. 1099 Box 1 shows your total interest income - it isn't supposed to be net of your EWP. The total of all your interest income from all FIs goes on Schedule B Line 4 and that number then goes on your 1040 Line 2b. The total of your Box 2 EWPs go on Schedule 1 Line 18 and that number then goes on your 1040 Line 10. If your interest was actually net of your EWPs as you say, then you would be double-dipping on your EWP which of course isn't correct.
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happyharold4
  |     |   388 posts since 2022
Yes---This at just one FI---1099 Box one is $1500 and Box 2 is $50---All the open accounts Int/PD YTD adds up to $1450 and the closed account was $50---But I closed it at about 30 days so they charged me the total amount of interest accrued, ( $50 ), as an EWP---I called them and they said the closed account did earn $50 so they had to add it in with the total Int earned for 2023 making the amount on the 1099 $1500 vs $1450 and it is offset by putting the $50 in box 2.
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me1004
  |     |   1,379 posts since 2010
The EWP goes on 1040, Schedule 1, Part II, line 18. All of the Part II numbers total on line 26. That total goes on 1040 on line 10 as an adjustment to income.
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