it says I get "early withdrawal penalty deduction" this year that i did not get last year. what is this? i did not take any withdrawals from IRA or 401k

Forum|Forum|1 year ago
February 16, 2025
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DawnC

Employee

Where do you see that message? Did you take a CD early and pay a penalty?

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oleg-iljAuthor

Its under tax credit section. I did not take any withdrawals from anything.. the way it says it. It’s like a credit so it benefits me instead of penalizing, but I want to make sure my taxes are correct and I have no idea where it came from

ThomasM125

That would come from an entry on your Form 1099-INT in box 2. If you had an entry in that box it would mean that you paid a penalty for an early withdrawal from a savings account, normally a certificate of deposit. The penalty is deductible from your interest income reported in box 1, but it is not a credit.

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