1. Money
Send to a Friend via Email

Discuss in my forum

Early Withdrawal Penalty Deduction

By

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.

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

  1. About.com
  2. Money
  3. Tax Planning: U.S.
  4. Tax Deductions
  5. Early Withdrawal Penalty Deduction

©2014 About.com. All rights reserved.