Do TurboTax “Rounded” 1099-B input entries need to be manually “corrected” to be consistent with 1099-B reported to IRS?

[ReneeM7122]

Some states require a PDF attachment for certain transactions.  Without seeing your return we don't know if this is the case with yours; however, to provide a general answer to your question, attaching PDFs can be done but only through downloaded software.  The option refers to e-filing as well as mail filing.

@de_prof2003

[Scotca]

Im having the same issue.  The rounding occurs at each stock transaction instead of at the total, additionally, 300.43 is rounding up to 344.  So far it is off on one 1009-b $5277 - Turbo Tax 5279,  but that one only has four transactions.  Turbo Tax you need to elevate this and get the worksheet for form 8949 to work correctly - now.

[ikoutis]

Big disappointment. Spent multiple hours fixing the bugs with 1099-B with no luck. The error messages are cryptic and the correction interface unusable. 

[Ivan L]

I have the same rounding issue after importing 1099 from Robinhood (10 transactions for example). Summary is below: 
RH - 1,367.09    1,143.93       223.16

TT -  1,365.0      1,145.00       220.00

So numbers are clearly off by 3 dollars meaning I'm underreporting $3 worth of gains and i don't think this will fly with IRS since they are looking at summaries.  I have no wash sales.  I never saw this before. Looks like a bug and TurboTax needs to look into this. 

[bredman]

As of 3/2/2021 in TurboTax Premier I see the correct amounts to the cents in the lowest level detailed entries imported from my brokerage firm compared with those in the corresponding written Form 8949. However, I have seen several rounding errors (rounding down when it should be rounded up and vice versa) in the next level up in TurboTax. This has caused nearly a $5 discrepancy in the summary values reported in TurboTax versus the summary values reported on the written 1099-B for my account.

Intuit needs to fix this issue in TurboTax immediately. Responses directing one on how to clear out all the entries and enter the information manually are not at all helpful when one has hundreds of transactions to report. I paid about $90 for TurboTax Premier so that the software would handle the data import and calculations correctly, especially since TurboTax advertises its "100% Accurate Calculations Guarantee."

[chuck6625]

This is a bug TT needs to fix it.  Entering the transactions manually does not fix the issue. The rounding occurs at the individual transaction in 8949. For people who have a lot of transactions, this issue causes a big variance.

This issue did not exist in 2019 and years before.

Very disappointed.

[trungson]

I just ran into this issue today (Mar 5) and with many transactions rounding off individual transactions instead of JUST the total will definitely mess things up. I only had around 600 transactions in 2020 but 2021 likely a lot more.

With no commission, retail investors are likely to trade more frequent and thus generate more transactions. TurboTax needs to figure out a way to handle more transactions faster and more accurately.

[ReneeM7122]

The rounding of 1099-B transactions is done in accordance with IRS guidance.

According to to IRS Pub 17:

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.

Negative amounts.

If you file a paper return and you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts.

Every TurboTax Online return is backed by 100% guarantees.

Please visit this link to view more information.

@trungson

[Anonymous]

Hi. Please re-read your response (again)

..."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 not the way that TurboTax does the calculation!  Please do not show this issue solved, it's insulting.  We have all read this and have come to the same conclusion...  TurboTax is doing the calculation WRONG according to the tax code you just posted.

Respectfully

[chuck6625]

Agreed "You can round off cents to whole dollars on your return and schedules", but not Form 8949. You can do the rounding on the final total of all 8949 pages and carry it over to Schedule D.  That's what TT did in the past.

Now go back to the given example:  $1.39 becomes $1 and $2.50 becomes $3.

Assume this is a profit transaction, the filer has a gain of $2  (3-1) instead a gain of $1 (2.50-1.39).

If there are 100 rounding transactions like this, the filer would pay a capital gain of $200 instead of $111.

An extra capital gain of $89 the filer has to pay tax on.

If the situation is reversed, it would be an extra capital loss of (89). I don't think the IRS would overlook this discrepancy when comparing with the reported 1099-B.

[gamer_jedi]

Exactly.  The IRS does not want rounding on the 8949 calculations, but they accept rounding on the schedule D...  I'm not sure why anyone would think otherwise.  Why not be precise with the numbers, to make sure to NOT cause filing issues for customers?  This should be an extremely simple code change to do the correct thing here, as was done in the past versions of TurboTax.

[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."

@ReneeM7122 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!

[chuck6625]

As a programmer myself, agreed this is a simple code change.

"If it ain't broken, don't fix it".  In this case, it's broken.

[chuck6625]

If you have a Wash sale, the report in Column (g) of Schedule D could be off too.

It's a mess. It used to work in the past.

[rockdoctor]

@ReneeM7122 What is it going to take to get someone other than you to take a look at this?