hello,
I got 1099 INT for my cd for year 2023. However, I redeemed and withdraw the amount before it matures this early of 2024. My question is can I deduct the interest penalty for 2023 as they took out almost 6 months of last year interest (2023) with the amount that I got back. Please help. My 1099 Int for 2023 does not show the penalty for early withdrawal.
Thank you
If I understand you correctly, you made the early withdrawal in 2024. If so, the penalty will not be on your 2023 Form 1099-INT because you didn't pay it in 2023. You paid it in 2024. For the same reason, you cannot deduct the penalty on your 2023 tax return. You will have to deduct it on your 2024 tax return because that's the year that you paid it. You should get another 1099-INT for 2024 showing the early withdrawal penalty, even if it doesn't show any interest. You will be able to enter that 1099-INT in your 2024 tax return.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
©1997-2022 Intuit, Inc. All rights reserved.
Intuit,
QuickBooks, QB, TurboTax, ProConnect, and Mint are registered
trademarks
of Intuit Inc. Terms and conditions, features, support, pricing,
and service options
subject to change without notice.
Security
Certification of the TurboTax Online application has been
performed by
C-Level Security.
By accessing and using this page you
agree to the
Terms of Use.
Accessibility
