8949/1099b question

Forum|Forum|5 years ago
February 23, 2021
7 replies
31 views

Hello,

I am working on tax year 2020 taxes on TT and I uploaded my 1099b forms from the brokerage that TT does for you and there is a discrepancy on 8949 that TT completed and the total on my 1099b. It looks like they rounded everything on the form which is different than TT did on the 2019 edition. The difference is 8 dollars..question is this normal and allowed, will the IRS flag this 8 dollar difference between 1099b and 8949?

Thank You

JoannaB2

Alumni - Intuit

The amount of income and expenses may be entered as is but will be rounded off or drop down to the nearest whole dollar amount in Turbo Tax. For example, $5.45 will be displayed as $5.00 on the income tax return while $5.60 will be displayed as $6.00

The IRS and the State checks all the income tax returns for accuracy. The difference of the rounding off and dropping down the numbers to the next wole dollar might be acceptable as long as it is reasonable.

taxquestioner85Author

Level 2

Turbotax software is automatically computing the rounding. I wish they would have stuck with what they did in 2019 and just round the bottom number so it matches 1099b, the only question and issue is whether the IRS is going to accept this discrepancy between what the rounded 8949 and 1099b state.

MinhT1

Alumni - Intuit

You do not need to worry. The IRS is aware of the rounding rule and will accept your numbers. The rounding discrepancy in dollars can be as much as half the number of lines you are adding up. In your case, a $8 discrepancy is quite acceptable.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"