MikePawson
Returning Member

Retirement tax questions

This doesn't address the question. The problem is that TurboTax expects the rounded values on Form 1099Q Box 2 and Box 3 to add up to the rounded value in Box 1 - you can potentially be off by a dollar. The question is where to fudge the dollar, recognizing that turbotax will then have a value that doesn't match a value reported to the IRS on the tax form.

 

By way of example, here's my 1099-Q this year (only using ending digits for privacy):

Box 1 Gross Distribution: $9.61

Box 2 Earnings: $4.34

Box 3 Basis: $5.27

I enter those values. Turbotax then rounds each of them into

Box 1: $10

Box 2: $4

Box 3: $5

and yells at you that it's out of balance as Box 1 should equal the sum of Boxes 2 and 3.

In order to make it balance, one of those boxes needs to get changed to something which will be $1 off from the rounded value reported to the IRS. Which is the least bad option?