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A
azeem3
February 23, 2025
Question

If a person has an interest income of $5,826 but paid an early withdrawal penalty of $947, should this be subtracted from total income for the question on gross income?

  • February 23, 2025
  • 1 reply
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    1 reply

    M
    MayaD
    February 27, 2025

    Yes. When you enter the interest income on Form 1099-INT, check the box: 'My form has info in more than one box 1'. Then enter the penalty in box 2.

    The amount transfers to Form 1040, Schedule 1, Line 18 as adjustment to income.

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