CD early withdrawal penalty
Varies
Can You Write Off CD Early Withdrawal Penalty?
Short answer: Yes: the penalty a bank charges for cashing a CD early is deductible above the line, even if you don't itemize.
It's shown on your 1099-INT.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
BW-B23-00521
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CD early withdrawal penalty
Varies
Individuals / Personal Taxes
Other Expenses
Personal Tax Deductions
Yes: the penalty a bank charges for cashing a CD early is deductible above the line, even if you don't itemize.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: the penalty a bank charges for cashing a CD early is deductible above the line, even if you don't itemize. It's shown on your 1099-INT.
Category
- Personal Tax Deductions
personal deduction
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