If you withdrew money from a certificate of deposit or other time-deposit savings account prior to your certificate maturing, you may have incurred a penalty for early withdrawal. This penalty is charged by the bank and withheld directly from your proceeds from the certificate.
More Tax Planning: U.S. Quick Tips
Where to Claim
The penalty is reported to you on Form 1099-INT, Box 2. Enter this figure on Line 30 of your Form 1040.
From the IRS
"The Form 1099-INT or Form 1099-OID you received will show the amount of any penalty you were charged."Source: Instructions for Form 1040, Penalty on Early Withdrawal of Savings
Additional information:
Certificates of Deposit: How They Work
Certificate of Deposit Penalties
