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J
jonlynne
March 5, 2025
Question

can the amount of an early withdrawal penalty in box 2 of my 199-int form be deducted from interested income reported in box 1?

  • March 5, 2025
  • 1 reply
  • 0 views
or has the early withdrawal penalty already been deducted from the interest income before the bank posted the interest income in box 1?

    1 reply

    CatinaT1
    CatinaT1
    March 5, 2025

    No, you don't deduct it from the interest, but enter everything just as it shows on your 1099-INT Form. You will receive an adjustment to income for the early withdrawal amount. TurboTax will automatically do that based on your entry in box 2.

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