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

[PlotinusRedux]

@RDavis2528 Correct, the doubled foreign tax credit was in the pre-existing return where I deleted the import from the Import Summary section in the app and then re-imported it from there.

However, I did try a completely new return--I literally renamed the existing tax file .bak and selected "Start New Return" inside the application.  When that did not fix the capital gains on Schedule D or 1040 Line 7 but only on the screen, I restored the .bak file to avoid re-entering all the other types of income, etc.

I appreciate you're trying to help--and you've given good suggestions--but I've been coding and debugging for over 40 years, I promise when I say I renamed the files and selected "New return", I did so.

I would have thought maybe it as a Mac/Windows things but people have reported the same issue on Mac.

If your 1040 Line 7 changed when no one else's did--I'm not sure how that math would add up since 8949 rounding didn't change--but be assured it is still a real issue for at least many of us even after starting new returns from scratch that is now compounded by the number on the screen having changed when the numbers on the forms did not.

[Airguy]

Adding to what @RDavis2528 said about the double foreign tax credit, I think he is right that thie issue was that the user reimported the entire brokerage file while only deleting the 1099B.  I did this once where I had entered the 1099 DIV, INT etc. and only imported the brokerage data once getting to the 1099B portion of TT (a lot of entries).  Doing that doubled up all the 1099 DIV, INT etc. entries I had previously added.  That is, the import function used when entering the 1099 B seems to import the entire brokerage file, not just te 1099 B portion.

[PlotinusRedux]

@Airguy I deleted the entire import in the Import Summary section, but at any rate that's a side issue to the displayed gains not matching that reported on Schedule D and 1040 Line 7 even with entirely new returns as verified by other uses.  The doubled foreign tax credit was just a note for others to double check theirs if the deleted and re-imported.

[Anonymous]

There was a Federal software update today, but unfortunately it didn't seem to make any further improvements.  

I still see the issue above, where 1099-B Wks values from the summary table are not properly carrying over to Schedule D.

[mikemaloney17145]

I've encountered this problem as well.

Without a fix for this, does anyone have a recommendation for an alternative

to TurboTax (H&R, TaxAct, ...). 

I'm ready to give up on TurboTax.

Thanks

[ReneeM7122]

You will have to go back to your 1099-B and fix each transaction manually.  Go back to your 1099-B and delete every adjustment that went from less than .49 to 0.

The rounding is allowed per IRS regulations but it causes a conflict in this particular part of the software.  The IRS says as follows:

Computations

The following information may be useful in making the return easier to complete.

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.

If you are entering amounts that include cents, make sure to include the decimal point. There is no cents column on Form 1040 or 1040-SR.

Equal amounts.

If you are asked to enter the smaller or larger of two equal amounts, enter that amount.

@mikemaloney17145

[mikemaloney17145]

There are also problems with the summary reporting option.  The NEW limit on large number can interfere.

Consider 500 short term buy/sell transactions.  Each one is a buy worth $25,000 and a sell for $25,001.

Your net profit would be $500.

However, in the summary options, Schedule D column d (proceeds), the amount to enter is 12,500,500

and the amount for Schedule D column e (cost basis) is 12,500,000.

Even though the net profit was only $500, the other amounts exceed the apparently new limit of 9,999,999.99

for any number.    I say that this is a NEW limit because this is the exact problem I'm having with TurboTax starting this year.  I've used TurboTax for several decades.   I just check my return from last year and my entry on Schedule D line 1b column d was over 44,000,000 (my column h net gain was a much much lower reasonable number).
I can't file a return with TurboTax this year that is identical to the return I successfully filed last year with TurboTax.   
If anyone in this forum has a recommended alternative, I'd like suggestions.

[TaxFiler22204]

It's 04/30/2021 and Turbotax still has not fixed this.

I also checked my 2019 return and Form 8949 was not rounded and matched broker statements. Thankfully I don't have too many but wow, what a lack of customer functionality from Turbotax. 
Why aren't you fixing this Turbotax, and why did you make the change in the first place - as many have said this is not required by the IRS.

[pjanas]

TurboTax is inaccurate.  Federal refund amount submitted to IRS is incorrect.  The IRS refund on my Federal Taxes was $9 more than my TurboTax return.  In 12 years of TurboTax returns 2020 is the first time my refund didn't match.   Data on Form 8929 is supposed to match the 1099-B that financial institutions submit and it doesn't.  This leads to bottom line Tax due/refund discrepancies.   It is likely though unproveable, that TurboTax 2020 transaction level rounding is causing mismatches at the IRS.  The IRS doesn't explain the $9.   I did not override any data in TurboTax.  There's no way to prove it is due to TurboTax transaction level rounding but my self-calculations on Schedule D without rounding each transaction was significantly lower than the number TurboTax generated and reported.  

[NigelTex]

This whole situation is bizarre I submitted my return on March 1st and only just received notification I will be paid on May 20th, so much for 21 days.  I had to correct multiple entries from the brokers download and now I find the IRS are giving me more than $200 extra due to TurbTaxes incompetence.  Unless they fix this I for one will not use them again after 24 years of happy experience.

[pjanas]

I agree.  TurboTax failure to match IRS's bottom line points to quality issues with the product and poor decision making. 

[Abby Normal]

"I heard that in the next software update they're going to round our SSNs too"

LOLOL Thanks, I needed a good laugh 🙂 Careful though, don't give TT any crazy ideas or else the next "improvement" will include rounded SSNs, street addresses and ZIP codes.

[Critter-3]

@pjanas

$9 extra refund is probably interest due to the length of time it took to process the return ... watch for the IRS notice next January.

Or  recalculating of the stimulus credit due to the info you entered being incorrect.  Or a recalculating of the unemployment,  PTC or one of a number of other situations which may not have been TT or your error. 

[pjanas]

Thanks Critter-3.   The $9 could very well have been interest for the Round 1 stimulus delay.  No other scenarios apply.  The refund was at the bank a within a week. 

[Geoffl10]

Anyone know if this got fixed for 2021 filing?