topic My Fidelity import for stock on 1099-B is rounding this year instead of exact data. Net is immaterial. Why did TurboTax change this and is this acceptable to the IRS? in Get your taxes done using TurboTax

My Fidelity import for stock on 1099-B is rounding this year instead of exact data. Net is immaterial. Why did TurboTax change this and is this acceptable to the IRS?

JMS23 — Thu, 04 Mar 2021 19:46:18 GMT

I can change these manually, but it's a lot.
The import has always worked in previous years.

Re: My Fidelity import for stock on 1099-B is rounding this year instead of exact data. Net is im...

HelenC12 — Thu, 04 Mar 2021 20:22:29 GMT

Yes, the IRS allows rounding. Per IRS Publication 17, page 13: 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

Re: My Fidelity import for stock on 1099-B is rounding this year instead of exact data. Net is im...

JMS23 — Thu, 04 Mar 2021 22:38:09 GMT

Thanks for the response!

I was hoping there was a new setting in turbotax as it is importing with the rounding without prompting.

Everythiing else that I imported was Not rounded. Only on Fidelity activity. Reconciling/review is easier
with the exact amounts when there is volume of any kind.
All of it rounds on the returns, (not schedules ) so I'm not sure why they changed it.

Thanks again for your help!

Re: My Fidelity import for stock on 1099-B is rounding this year instead of exact data. Net is im...

mjrengaw — Thu, 11 Mar 2021 02:40:44 GMT

@JMS23 The information provided above is missing an important detail.

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.

Their are several threads concerning this issue. One of the largest is here-

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/turb[product key removed]ing-issues-crea[product key removed]nces-between-turbotax-produced-return-and/00/1948037/highlight/false/page/8

Re: My Fidelity import for stock on 1099-B is rounding this year instead of exact data. Net is im...

JMS23 — Thu, 25 Mar 2021 18:21:49 GMT

Thank you so much for this information and confirmed what I thought on TT changing it in error. I will check out the link for other threads for the solution though I'm afraid it will just be I have to manually adjust each item!