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

[marmil]

I too am really annoyed with this arbitrary and incorrect decision by Turbotax

There is absolutely no justification for this. If an individual taxpayer wants to round their numbers, they can do so--but forcing EVERY USER to accept this inaccurate implementation is ridiculous.  And in many cases, the result is also unfavorable to the taxpayer--- it is bad enough to pay as much as the government takes from us-- but to have the tax software force us to pay even more really takes the cake

[NigelTex]

Based upon my two imports I think they fixed it.  I only had a few transactions however.

[sfamsieg]

I imported one of my 1099-B forms and it seems to be ok.

So hopefully it has been fixed but I will check again everything later.

[marmil]

I am still having the problem on 1099-G forms that I enter myself.............when I go to the form directly, they have implemented it with no ability to enter anything following the decimal point -- so if you enter the real number directly on the form instead of in the step-by--step it rounds it

[marmil]

They fix it in the 1099 when you enter it in the worksheets.................but when it makes it to the actual tax forms, each document is being rounded........... they are not even doing the rounding at the total of all 1099s......

you can still see what you entered.......but the math is very screwed up-every line item is rounded........this really sucks

[NigelTex]

I filed no problem and the downloading from 4 brokerage accounts was as it was before last years debacle.  No errors this time as opposed to over 400 last year.

[Nan2C]

2022 Rounding is still causing unnecessary headaches. 

My recent love affair with Turbo Tax and Intuit is souring.  

I had everything entered and happy (by hand!) and decided to stretch and try the import.

What a time consuming un fun mess. So much for convenience. 

A Good Clear option of rounding or NOT would be great.  Maybe I am missing something.

SOOOO many comments on this issue.  

[Geoffl10]

Looks like Turbotax 2021 is trying to pull a fast one.

When you import the 1099-B forms this year, everything looks great. All listed proceeds  are exact to the penny. The totals are exact to the penny.

Perfect! But...

When you look at the worksheets and the Form 8949 sheets, all the transactions are rounded! Just like last year.

Dishonest and deceptive, if you ask me.

[seedpearls]

Hi all,

I just read IRS' 2021 Instruction Form 8949. Under "Rounding Off to Whole Dollar" section on page 2, it says:

"You can round off cents to whole dollars on Form 8949. If you do round to whole dollars, round all amounts. To round, drop cent amounts under 50 cents and increase cent amounts over 49 cents to the next dollar. For example, $1.49 becomes $1 and $1.50 becomes $2."

This sound to me that we can round off every numbers on Form 8949. What do you think?  

I can't find 2020 Instruction so I don't know whether it actually changes this year (compared to the one last year).  

P.S. I have not read all comments on the thread, so I apologize if this has been mentioned before.

[JillS56]

Yes, you can round all numbers on your 1099-B.   In fact, all amounts entered into TurboTax can be rounded up or down.  Anything $.49 or under goes down, anything .50 and up goes up.

[seedpearls]

@JillS56 

Thanks!  Before I read the paragraph, I always thought that the rounding could not be done on every numbers on Form 8949.  Rather, it should have been done on the total only on Schedule D.  I think that's what these people were discussing about.  

[mjrengaw]

AFAICT this issue was fixed in TT this year. But to answer your question (and yes if you read back thru the threads on this we covered this in detail last tax season) if you read further in the instructions you will see that you are also instructed that if calculations are to be done on individual line items then the entire, unrounded, number is supposed to be used in the calculation and then the result is supposed to be rounded. You are not supposed to round the individual items first prior to doing the calculation. That was the crux of the issue last tax season.

[mjrengaw]

The IRS instructions still instruct taxpayers that if you have to do any calculations on two or more numbers you need to use the unrounded numbers and then only round the result. That instruction has not changed and was the crux of the issue last year. Again, AFAICT this issue has been corrected in TT for this tax filing season. The reason I say AFAICT is that when I imported my transactions from my brokerage this year, unlike last year, all the capital gain/loss totals in TT matched exactly with the form I received from my broker. Unlike last tax season when they did not which is why we all got in this discussion in the first place last tax season.

[Anonymous]

While the instructions for this form may give that particular rounding method, the official IRS regulations allow rounding of each entry, as long as the rounding method is consistent.

With the millions of people who use TurboTax and the intense scrutiny that the program goes through to be approved by the IRS, the IRS would have certainly already had something to say about this to TurboTax if it were a problem. It is not a problem, never has been.  

[seedpearls]

@Anonymous 

I just checked my 2019 tax return which I prepared using Turbo Tax.  Turbo Tax actually didn't round up all entries on Form 8949 back then. This round up issues started from 2020 tax return. So probably it has not been long enough for IRS to say something on this?