When will rounding of individual transactions on form 8949 be corrected?

[mjrengaw]

Rounding at the individual transaction level on form 8949 is causing a large discrepancy with what is being reported to the IRS on form 1099-B from my broker. This never was the case in any prior year using TT and is completely new behavior. It is not required by the IRS and is causing my tax liability, as calculated by TT, to be different (higher) than what it should be. Accuracy of my reported investment transactions, and my overall tax liability, is one of the primary reasons that I use TT Premier.  When will this be fixed?

[sfamsieg]

This is a serious issue and must be fixed ASAP.

Rounding leads to mismatch for more than hundred dollars in my case.

Turbotax, please fix it!

[DJG]

TurboTax, please fix this ASAP!!  There is absolutely no good reason to be rounding cost basis and proceeds for every transaction.  I sold hundreds of tax lots in 2020, many of which were just partial shares from dividend reinvestments, and all the transaction-level rounding is creating a $70 discrepancy on Form 8949 vs. what my 1099-B shows. Unacceptable, and frankly unfathomable why you would have made this change.  Please change it back.

[ReneeM7122]

@DJG You are correct,, TurboTax rounds transactions on form 8949.

Rest assured though, your tax return is backed by a 100% accuracy guarantee.

The rounding is done in accordance with IRS regulations 

Here it is from their website (under "Computations": https://www.irs.gov/publications/p17/ch01.html  

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.

[DJG]

@ReneeM7122  Wow, this is classic TurboTax.  Can you explain then why on this other thread, Employee Tax Expert WendyN2 said a fix was anticipated by March 15?  Is she mistaken or are you?  It would be nice to have a decisive answer on this.  Thx.

[sfamsieg]

My recent findings:

I tried to see how HR Block and CreditKarma work with 1099-B forms and how they deal with this issue.

Both round each line and then calculate total amount. Therefore, It seems similar problem is everywhere and maybe it's even fine but I wouldn't like to deal with IRS and explain the difference in 1099-B and 8949.

Currently I see the only one way here:

Do not import 1099-B forms, choose Enter Manually, Select 4+ transactions. In this case Turbotax proposes to enter total amounts, broker names, EIN, etc. Amounts will be rounded but it's ok here since it's total only. And then Turbotax will ask to attach PDF file with the 1099-B form, which can be attached. And Then it can be e-filed, I hope. But It may not work for everyone. https://www.irs.gov/instructions/i8949 

Exception 2.

Instead of reporting each of your transactions on a separate row of Part I or II, you can report them on an attached statement containing all the same information as Parts I and II and in a similar format (that is, description of property, dates of acquisition and disposition, proceeds, basis, adjustment and code(s), and gain or (loss)). Use as many attached statements as you need. Enter the combined totals from all your attached statements on Parts I and II with the appropriate box checked.

For example, report on Part I with box B checked all short-term gains and losses from transactions your broker reported to you on a statement showing basis wasn't reported to the IRS. Enter the name of the broker followed by the words "see attached statement" in column (a). Leave columns (b) and (c) blank. Enter "M" in column (f). If other codes also apply, enter all of them in column (f). Enter the totals that apply in columns (d), (e), (g), and (h). If you have statements from more than one broker, report the totals from each broker on a separate row.

Don't enter "Available upon request" and summary totals in lieu of reporting the details of each transaction on Part I or II or attached statements.

.

Exception 2 is not available for the election to defer eligible gain by investing in a QOF. Taxpayers who elect to defer eligible gain must report the details of each investment in a QOF on Form 8949 in the manner described under How To Report an Election To Defer Tax on Eligible Gain Invested in a QOF, later.

[mjrengaw]

@ReneeM7122 With all due respect, does everyone at TT have some sort of cognizant dissonance? Why do you all seem to want to ignore the specific paragraph in the IRS instructions that you quote that is actually relevant to the problem that we are describing which is this - 

"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."

This is what TT is not doing correctly in this specific case and what needs to be fixed. TT is rounding the two numbers, proceeds and cost basis, PRIOR to doing the calculation. What TT should be doing, and per the IRS instructions quoted above, is to include the cents in the two numbers, proceeds and cost basis, when doing the calculation and then round the result. That is what TT did in every year prior to this year. Why is this so hard for the TT folks to understand. Honestly I'm getting tired of trying to explain it!

[Scotca]

I absolutely agree.  If you look at the turbotax 2019 or 2018, The cents were entered, and rounded after the subtraction.   This will give the result that is reported on the 1099-B, otherwise the only other option is to manually adjust the result using the other adjustment code 0to force a correct result.  The issue need to be fixed otherwise I'm getting audited.

[NashayLO]

TurboTax automatically rounds capital gains and losses from 1099-Bs. This is to reduce the chance of audits and miscalculations. The IRS allows rounded numbers. https://www.irs.gov/instructions/i8949

[Scotca]

It is rounding before subtracting.   Every other year it worked correctly.  This year not so much.  for example : If I have a sale of 2,345.67 and a cost basis  of 1,234.45 = 1,111.22 or rounded 1,111 .  TT is taking the numbers as follows 2,346 - 1,234 =1,112. Resulting in a $1 dollar difference - this occurs repeatedly and the final totals are off significantly.  So I don't know what to tell you besides fix the program.  I grow tired of hearing that the IRS allows the number to be rounded.  Allow and requires are two different things, and I prefer my taxes to be correct to the dollar.

[mjrengaw]

@NashayLO Before you take the time to respond you should take the time to read the many threads on this subject to get a background on the discussion. The specific paragraph in the IRS instructions that is relevant to the problem that we are describing is this - 

“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."

This is what TT is not doing correctly in this specific case and what needs to be fixed. TT is rounding the two numbers, proceeds and cost basis, on form 8949 PRIOR to doing the calculation. What TT should be doing, and per the IRS instructions quoted above, is to include the cents in the two numbers, proceeds and cost basis on form 8949 when doing the calculation and then round the result. That is what TT did in every year prior to this year.

We appreciate your willingness to help but you need to catch up to the many weeks of discussions that have already transpired to effectively contribute.

[10Kosmo]

@NashayLO 

@mjrengaw 

Please note: In fact, 8949 instructions are missing the Schedule D instructions under heading "Specific Instructions - Rounding Off to Whole Dollars" that states 

"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."

2020 Instructions for Schedule D (2020) | Internal Revenue Service (irs.gov)

Thank you for your attention.

[JoshB1]

Oh lovely, another thread on this where Intuit employees fail to acknowledge the actual issue

I see there is a TurboTax update (of course Intuit stopped posting release notes so we have no idea what changed) - anybody see any differences? 

FWIW, I'm not seeing any differences on my 8949 - but who knows, maybe you have to reimport to get it fixed?

[fanfare]

If you summarize (recommended),

you only need to supply details of 1099-B covered transactions with adjustments that are not listed on your e-Filed Form 8949. and all non-covered transactions not listed there.

in other words, for active investors, generally this is a list of the Wash Sales.

Note: turboTax may suppress some covered transactions without adjustments. For those, no mailing is required !
--
If you have two pages (for example) of Wash Sales,
use Adobe Reader to print those two pages. That's all you have to mail to the IRS, given that those wash sales are not on your e-Filed form 8949 already.
(you might enter them manually if they are few in number.)

If you were wise enough to avoid wash sales, you won't have to list or mail anything.

[DJG]

Maybe we should all just email Intuit's CEO and call this problem directly to his attention:  sasan_goodarzi at intuit.com