TurboTax Early Rounding Issues creating LARGE variances between TurboTax Produced Return and Brokerage 1099-B Data

[Abby Normal]

I have used TurboTax for over 10 years to do returns for us and our elderly parents because it used to be faster, easier and more accurate for our situation than other methods. However, I just discovered the issue of rounding brokerage data that is causing large enough discrepancies to increase our tax burden and create major headaches. TurboTax customers with investment forms pay a premium for TT software to prepare tax returns that are supposed to be "100% accurate" with the "biggest refund possible".  Since TT introduced this rounding scheme (which actually violates IRS instructions, BTW), returns prepared with TT are no longer accurate and taxpayers risk losing out on refund $ they are entitled to, or facing potential IRS penalties and fraud charges for underpayment due to huge discrepancies introduced by the TT software rounding of investment transactions. Furthermore, it seems that TPTB have no interest in correcting this software issue or providing proper support to their customers. If we cannot depend on the TT 100% accurate guarantee because of errors they willfully introduced and refuse to correct, then it's time to start looking elsewhere for our tax preparation needs! Maybe they would start paying more attention if their high dollar customers started jumping ship en masse....

[JoshB1]

TurboTax definitely updated something with the release yesterday/today - my 1099B handling is different and I no longer have a hundred adjustment forms in my tax file - with that said, I see the 8949 is STILL rounded to dollars

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-imported-1099-b-cr...

🤦‍♂️  🤦‍♂️ 

 Might be worth updating and re-importing ALL of your 1099Bs to see if it resolves your issue - I made a copy of my tax file just in case

Awesome work Intuit (sarcasm heavily implied)

[sfamsieg]

Today I deleted all my 1099-B forms and imported again and surprisingly this time my totals in TT and 1099-B matched and there were no issues with rounding anymore (each row is rounded, but totals were calculated using precise numbers as we wanted). It seems TT fixed the problem silently or I'm just lucky. So I finally e-filed taxes.

[Abby Normal]

• Thank you for the update! 🙂 I'll have to check it out using an earlier version of my forms that doesn't have the broker info imported yet and see what happens. That would be great if the folks at TT actually did fix the problem after all. Hopefully all the threads, emails, calls, etc. complaining about this rounding problem did make a difference... We'll see. Thanks again.

[MaxTax00]

I tried on the Web Version and there was no change for me. Everything still rounded on Form 8949 creating substantial variances with the brokerage 1099-B.

[RDavis2528]

After yesterday's update I removed my 1099-B imports and then re-imported them.  YES! The G/L adjustment worksheets are gone and my total print goes from over 1,300 pages to 133. Success! Thanks everyone who contacted TT pertaining to this issue. It did get through to them!

[bredman]

If Intuit did finally come to their senses and fix the rounding error issues in Turbotax, the correction has come too late for me. Since Intuit had not even admitted that there was a problem with how the rounding was being done in Turbotax in their response, I decided to use the work around that @thomaswhitmire had suggested of adding a transaction with the correction for the Turbotax rounding error, and I e-filed my return with that work around. 

Fortunately the IRS accepted my return and today I received my federal tax refund by direct deposit.

So for me, if Intuit has finally fixed the rounding error issues, it is a case of too little, too late. I, therefore, remain a very dissatisfied customer.

[JoshB1]

To clarify - if necessary - the rounding on my return (with 100+ 1099s transactions) was still off - the fix I see is the adjustment for ESPP and wash sales...to be more accurate 

TurboTax is still - INCORRECTLY rounding values before the Schedule D which causes inconsistencies - which you (NOT THEM) are probably on the hook for if the IRS wants to make it a problem

Just dumb all around

[MaxTax00]

@RDavis2528 

Glad your issue got fixed but I think the issue most people on this thread are having is that all the numbers on Form 8949 are being rounded...and that has not been fixed as far as I can tell.

[lucky_cat]

After waiting for almost a month and still don't get a fix, I decided to enter the summary with adjustment for wash sale, then attached pdf of 1099-B and e-file yesterday. My local tax guy would have charged less than TT premier and wont waste my time like this. Extremely disappointed!

[dm47208tt]

Folks something is definitely different for the better following the Friday update--at least for the CD version. Yes, as @RDavis2528 and @JoshB1 note, the GL Notes are gone -- I can confirm the pruning is done without having to reimport 1099-Bs. What a pain they were.

And as @sfamsieg and @JoshB1 note, rounding is definitely improved. I believe we may not need to reimport 1099Bs. I say this because I reimported only one of three 1099Bs (all previously with 8949 mismatches vs. reported) yet all three now match the reported values. Not definitive... mileage may vary.

One caveat to my enthusiasm -- I had no wash sales to contend with, so I can't say if that aspect has improved for those of you struggling with them.

[MaxTax00]

@dm47208tt 

I am confused, are all the transactions listed on Form 8949 no longer being rounded for you? Or do you not have any transactions listed on Form 8949?   I updated the Desktop version, re-imported,  and I see zero change from what I had last week. They are rounding the Proceeds, Cost, Adjustment, and Net for every transaction listed on Form 8949. 

[RDavis2528]

I'll provide some additional information:

I am using the desktop version of TT Premier downloaded.

With the update of 3/25: a) between Schedule D and my 1099-B sales proceeds are within $2; b) between Schedule D and my 1099-B cost basis is within $2; c) between Schedule D and my 1099-B the wash sales (I have around 50) agree to the dollar (rounded); and, d) the 1,100+ pages of G/L adjustment worksheets are gone.

Yes, the entries on Form 8949 are still rounded but the total shown on Schedule D is within $2 and I can live with that. I had over 900 transactions reported on my 1099-B so to round on Form 8949 and then be off only $2 on Schedule D I'm happy.

[nbedh]

I just did the update — the issue seems to be fixed.  I did not need to do re-imports of 1099Bs.

Our collective efforts paid of ... thanks everyone!

[MaxTax00]

I guess one's degree of satisfaction is determined by how many transactions they have on Form 8949 (wash sale adjustment trades, and non-covered securities transactions.) For me, I don't really see any improvement as all my transactions on Form 8949 are still being rounded and this creates a substantial variance (more than a few dollars in my case) between my Schedule D and 1099-B when I preview the PDF version of my return.