Penalty on early withdrawal of savings is being calculated on regular interest income, Why?

[sharol]

I used interest income worksheet and entered Capital One Interest income. Penalty on early withdrawal of savings is showing up on Schedule 1 and flowing to 1040.

[qbteachmt]

Capital One is a provider.

What sort of Account was this?

[sjrcpa]

It's an allowable subtraction. Check the instructions.

[Just-Lisa-Now-]

where did you want it to appear?

Box 2 of a 1099INT lands on Line 19 of Schedule 1

[sharol]

It is regular bank interest income. There should be no penalty calculated.

[Just-Lisa-Now-]

Did you enter an amount in Box 2 of the 1099INT form on Sch B? That usually means they cashed out a CD early and had to pay a penalty.

[sharol]

The penalty is showing up on Schedule 1 line18. Which then flows to Adjustments to income line 10 on the 1040.

[sharol]

Interest income is in Box 1. There is no entry in box 2.

[Just-Lisa-Now-]

Go back and look at all your Sch B entries.  Worst case scenario, delete Sch B and let it regenerate and re-enter your figures.

[Just-Lisa-Now-]

[sharol]

I have no entry in box 2. But an amount is showing on Sch 1 line 18.

[sharol]

I even deleted the line on my input and entered the Capital one Interest in box 1 with no entry in box 2. Still the penalty is showing on Sch 1.

[Just-Lisa-Now-]

Click on the QuickZoom button next to line 18, it will take you back to the point of origination.

[sharol]

Did that and it took me back to my Capital One line and the empty box 2.

[Just-Lisa-Now-]

Again, delete that entire Sch B. Does the penalty disappear from Line 18?

[sharol]

I deleted the entire sch B and did not put any entries in the worksheet. The penalty is still on 1040!

[sharol]

Just found it. It is coming from Sch K-1 input. 

[Just-Lisa-Now-]

Wow, I'm out of ideas.

Sounds like the file is corrupt in some way.

How complex of a return is it?

[sharol]

The quick zoom took me back to interest income worksheet and not the K-1 worksheet where the penalty amount was flowing from. Got it now.  Thank you everyone!

[george7814]

Enter on 11. Interest. fORM 1099-INT. "other" .