topic 1099-R Rounding error on total amount in Get your taxes done using TurboTax

1099-R Rounding error on total amount

Steve64 — Sun, 16 Feb 2020 17:31:53 GMT

Using Turbo Tax for Tax Year 2019. I have two 1099-R forms to enter reporting early distributions from two different IRAs. These two IRAs are in my 72(t) universe. When Turbo Tax adds the balances up, it is rounding down the two amounts first, and then adding them up, which ends up rounding down the total amount. Last year (2018), I only had one 1099-R form, and the amount was rounded up. Since I am taking the early distributions from my IRAs as a part of a 72(t) "Substantially Equal Periodic Payments" plan, I want the amounts to match exactly, year over year. In this case, the amount reported on this years return is $1.00 less than last year. I do not want to "bust" my 72(t) plan due to a Turbo Tax rounding error. Thoughts?

Re: 1099-R Rounding error on total amount

CatinaT1 — Sun, 16 Feb 2020 18:05:48 GMT

This is due to how the IRS allows software to round each individual number instead of only rounding the total. I would round the numbers yourself as you enter them instead of entering the dollar and cents. This way it will come out exact.

Re: 1099-R Rounding error on total amount

Steve64 — Sun, 16 Feb 2020 18:45:37 GMT

Why are software programs allowed to round differently than the general guidelines for rounding (do not round until after adding them together)?

Re: 1099-R Rounding error on total amount

DMarkM1 — Mon, 24 Feb 2020 21:12:10 GMT

Most likely because it is "substantially" the same.

Re: 1099-R Rounding error on total amount

marmil — Mon, 07 Feb 2022 22:21:42 GMT

ALLOWING rounding and FORCING rounding are two very different things

Turbotax is FORCING ALL TAXPAYERS TO ROUND _ WHETHER THEY CHOOSE TO DO SO OR NOT

THIS IS WRONG- NEEDS to be fixeD

Re: 1099-R Rounding error on total amount

marmil — Mon, 07 Feb 2022 22:25:55 GMT

NO THANKS-- forcing us to round is not correct -- i have no interest whatsoever in paying any additional tax- and that is what this rounding issue is causing for me

Turbotax has no integrity if it refuses to allow taxpayers to enter their data accurately

I am encountering rounding on many forms this year-- not only in what turbotax ultimately puts in the taxform- but even in some of the worksheets where I am totalling several entries-- and it does not even leave my original entry in place-- it replaces my accurate entry with the turbotax rounded number --- often resulting in totals that are several dollars off of reality-

Re: 1099-R Rounding error on total amount

DaveF1006 — Mon, 07 Feb 2022 22:52:18 GMT

This is not a Turbo Tax policy. The IRS requires that numbers are rounded to the nearest dollar if .50 or less. In addition, .51 cents or more, round up. IRS generally just chops off the change off the end, they don't round. This has nothing to do with the integrity of Turbo Tax but has everything to do with IRS guidelines. Please view this IRS link under the heading of Rounding Off Numbers.

Re: 1099-R Rounding error on total amount

marmil — Tue, 29 Mar 2022 00:24:27 GMT

"MAY" does not equal "REQUIRES"

you are just stating what the rule is IF you OPT to use rounding

there is NO REQUIREMENT TO ROUND