Penalty on early withdrawal of savings. If you withdraw funds from a time-savings account before maturity, you may be
charged a penalty. You must report the gross amount of interest paid or credited to your account during the year, without
subtracting the penalty. You deduct the penalty on line 29, Form 1040. Deduct the entire penalty even if it is more than
your interest income. The Form 1099-INT or similar statement given to you by the financial institution will show the
gross amount of interest and the penalty.