Question

Can I claim the 10% early withdrawal penalty I paid as a penalty deduction?

Answer

No you may not claim a penalty deduction. The 10% early withdrawal penalty isn’t deductible.

Related Topics

Related Resources

Tax Information Authorization (Form 8821)

You can choose a person to research your IRS account for you. Learn more about IRS Form 8821, Tax Information Authorization, from the experts at H&R Block.

IRS Letter 3500 – Interim Letter

Did you receive IRS Letter 3500? Learn more about letter 3500 and how to handle it with help from the tax experts at H&R Block.

IRS Letter 257C – We Corrected Your Name or Taxpayer Identification Number

The discrepancy between your name and your Taxpayer Identification Number has been corrected. Learn more from the tax experts at H&R Block.

Tax Debt Relief

If you owe a balance to the IRS, you may have several tax debt relief options. Learn more from the tax experts at H&R Block.