For the year ended December 31, 2023, Don Raff earned \$1,000 interest at Ridge Savings Bank on a certificate of deposit scheduled to mature in 2025. In January 2024, before filing his 2023 income tax return, Raff incurred a forfeiture penalty of $500 for premature withdrawal of the funds. Raff should treat this $500 forfeiture penalty as a Reduction of interest earned in 2023 so that only $500 of such interest is taxable on Raff's 2023 return. Deduction from gross income in arriving at 2024 adjusted gross income. Penalty not deductible for tax purposes. Deduction from 2024 adjusted gross income, deductible only if Raff itemizes his deductions for 2024