A taxpayer's certificate of deposit that was set to mature at the end of the year is needed for the down payment on their personal residence. The tax payer decides to cash out the certificate of deposit now. Is the following scenario accurate? Both the total interest amount of $1,600 and the early withdrawal penalty of $300 are reported to the taxpayer on the 1099-INT. The early withdrawal penalty of $300 will be an adjustment to income and reduce the taxpayer's adjusted gross income