The IRS requires that numbers are rounded to the nearest dollar.
.51 cents or more, round up. IRS generally just chops off the change off the end, they don't round.
Turbo tax will do the rounding for you.
Odd that IRS would recommend the taxpayer to round amounts, but then not round itself.
You are not required to round; but if your software is rounding, not much you can do about it.
TurboTax has rounding bugs, by the way, in the health care section and possibly elsewhere.
does IRS recommend to round up or down? or is that just what people do? I know IRS just lops the change off the end.
and yes, what's up with the inability to add columns of dollars and cents on the 1095A?
Please see IRS Pub 17 Computations on page 13. I think this also addresses the issue with 1095A.
" Rounding off dollars. You can round off cents
to whole dollars on your return and schedules. If
you do round to whole dollars, you must round
all amounts. To round, drop amounts under 50
cents and increase amounts from 50 to 99
cents to the next dollar. For example, $1.39 becomes
$1 and $2.50 becomes $3.
If you have to add two or more amounts to
figure the amount to enter on a line, include
cents when adding the amounts and round off
only the total."
In my experience, the only thing not rounded is the W-2 entries. All other are rounded as follows:
51 cents or more get rounded up to the next dollar amount.
50 cents or less gets rounded down to the next dollar amount.
No, 49 cents or less is rounded down.
The problem with 1095-A is/was, amounts were 31.50 per month and 12 roundings resulted in an error of $6.00.
IRS rejected the return because of a $6.00 difference in the yearly total.
The workaround is to reduce half of the entries by a penny.