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Can Cd Penalties Deduction On Taxes

Ratesaver
  |     |   187 posts since 2013

Can I deduct penalities from my taxes that amount to over a thousand dollars. I have heard different answers so please try to be accurate if possible

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fred_b
  |     |   172 posts since 2022
Your early withdrawal penalty will be reported in Box 2 of your 1099_INT tax slip. Plug that into whatever tax software you use and your taxes will be adjusted appropriately.
The EWP will show up on Schedule 1 Line 18.
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interested
  |     |   79 posts since 2019
Here's the form. See line 18.
https://www.irs.gov/pub/irs-pdf/f1040s1.pdf
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Ratesaver
  |     |   187 posts since 2013
Thanks for the info Fred and interested below, I will do just that. Thanks again
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