Rounding

Forum|Forum|4 years ago
May 27, 2022
3 replies
11 views

This is an attempt to pass on information to the software developers. With Turbotax, Estimated tax payments are entered separately and then each payment is rounded by the software then added together and entered on Form 1040. The IRS adds the payments together and then rounds the result. Sometimes this is not an issue, but it caused a difference of $1.25 owed on my most recent return and the IRS sent me a note and someday when they get around to it a bill. $1.25 is no big deal, but it's scary and annoying to get any IRS mail (and waiting for them to decide when to post it and give you an actual total due... with interest) and also annoying wasting a stamp, check and time to pay them $1.25 or maybe $1.26 (that dang interest!). So if the turbotax software can add and round the same way the IRS does it, that would be great. Thanks.

VolvoGirl

Level 15

Did you send in estimated payments with cents on them? You didn't send in whole dollar amounts? Or could it be for the Estimated tax penalty on line 38?

In the future just pay in whole dollars and avoid the rounding issues.

NCperson

Level 15

you peaked my interest

1) are you using online or desktop version of TT?

2) what are the 4 estimated payments you made in 2021 (just need to see x.xx - don't need to know the entire number)

3) in the desktop version, you can only enter whole dollar figures into the estimated payment field.... so I can't umderstanw how what you are describing could occur.

maybe I am not following.

KathrynFAuthor

Level 2

I used Turbotax premium online.

Yes, I made very exact payments - which means dollars and cents. And yes the program allowed me to enter cents. I will not do that in the future. Considering there are cents on W2's I figured it wasn't a weird thing to do. Actually the IRS didn't round at all, so they have me paying $xxxxx.75 and turbotax definitely rounded each of the estimated payments - I tried to change the end number on turbotax because it was higher than the TOTAL calculated in my Form 1040-ES/V record but it wouldn't allow a correction. And I probably should have fudged the individual entries to outsmart the software, but honestly I shouldn't have to outsmart the software. The software should be able to add and then round at the end which would have gotten me closer at least if it doesn't deal with cents.

I'm not sure the IRS will go after $1.25, but they asked me to send them $5.40 before so I am guessing I will be getting a bill here soon or why send a letter. If turbotax rounded at the end, it would have only been a 25 cent difference.

NCperson

Level 15

as stated, the windows desktop version will not permit cents to be entered; it has to be to the hearest dollar.

Also, save yourself the stamp (and envelope) ....pay directly at the IRS website.....

Pookie84

Level 2

My tax return was sent to Austin Texas January 28, 2022. Never received. Sent by mail and then get a letter from IRS in Memphis, TN? stating NO RECORD of receiving. SO where do I mail it?

Carol