topic 1095-A error in Deductions & credits

1095-A error

Dave1972 — Mon, 15 Mar 2021 16:27:10 GMT

I am using TurboTax Home and Business 2020 for Windows. I entered the information from my 1095-A in the Step-by-Step, under Personal, Deductions and Credits, 1095-A. I checked the box for "self-employed Marketplace plan" and connected the correct Schedule C. When I look in Forms View, the amount shown on Schedule 1 line 16 is off by $4. I am unable to find anywhere that the amount from the 1095-A would be adjusted for any reason. What is going on? Is this an error in the program?

Re: 1095-A error

MinhT1 — Mon, 15 Mar 2021 17:00:55 GMT

The error of $4 is a rounding error.

All numbers on a tax return are rounded to the nearest dollar. 0 to 49 cents are rounded down, 50 cents and up are rounded to the next dollar. As the numbers for each month on the form 1095-A are rounded, the totals may be off by up to $6. And this is quite acceptable for the IRS. There is no error in the program.

Re: 1095-A error

Dave1972 — Tue, 16 Mar 2021 21:12:18 GMT

It does look like that is the case, thanks. It is confusing and frustrating, however. The total annual amount from Form 1095-A was entered in the program, but the program is rounding each month and then totaling that up to enter on Schedule 1.

In the instructions for Form 1040, the IRS states: "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." (p. 22) It seems like the program should be written that way.

Re: 1095-A error

AmeliesUncle — Wed, 17 Mar 2021 04:05:44 GMT

You are correct, TurboTax rounds that incorrectly. In previous years, it seems like some TurboTax users even received IRS notices about the mismatching of numbers.