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

In TurboTax my 1099-B input entries for individual stock sales are "rounded" (up or down) giving inconsistent totals when "totaled" for all  1099-B sales (Different from 1099-B totals reported to IRS).  Is this a concern?  Should (can?) I correct manually in forms?  Will IRS flag difference?


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Level 2

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

Rest assured, this rounding difference will not unnecessarily flag your return.  In fact, the IRS absolutely allows it to make figures easier to deal with and lessen the chance for arithmetic errors, as long as all amounts are rounded consistently (which the program does for you). 

Per IRS instructions: "You may round off cents to whole dollars. If you do round to whole dollars, you must round all amounts. To round off amounts to the nearest whole dollar, 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 and only round off the total."

In Forms mode, I tested whether an override was possible on Form 8949 to include cents in the total.  Unfortunately, the program will default back to a whole dollar to be transferred to the Schedule D, so you will not be successful in attempting to manually change the amounts.  But again, this rounding will not cause any undue problems for the IRS, in and of itself. 

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2 Replies
Highlighted
Level 2

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

Rest assured, this rounding difference will not unnecessarily flag your return.  In fact, the IRS absolutely allows it to make figures easier to deal with and lessen the chance for arithmetic errors, as long as all amounts are rounded consistently (which the program does for you). 

Per IRS instructions: "You may round off cents to whole dollars. If you do round to whole dollars, you must round all amounts. To round off amounts to the nearest whole dollar, 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 and only round off the total."

In Forms mode, I tested whether an override was possible on Form 8949 to include cents in the total.  Unfortunately, the program will default back to a whole dollar to be transferred to the Schedule D, so you will not be successful in attempting to manually change the amounts.  But again, this rounding will not cause any undue problems for the IRS, in and of itself. 

View solution in original post

New Member

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

TTforBusiness2017 seems to do incorrect math on the totals of my 1099B entries (with Box A checked).  The totals at the bottom of the entries list are correct (and rounded) to 768,305 (Sale Proceeds) and 750,508 (Cost or Other Basis) but the Summary for This Account page shows a Net Gain/Loss of 17,800 instead of 17,797 for Total Box A.  Why the discrepancy?