A number of tax news stories I've read this year say that one of the main reasons the IRS audits a return is that people round off deductions... exactly what turbotax does!
Turbotax does not allow me to put in the actual amount to deduct, and if I do, it rounds it off!!
WHAT?
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TurboTax is not putting you at risk for audit. Please see the following from the IRS:
The instructions from the IRS for Form 1040 say that you can round cents to whole dollars.
"Rounding Off to Whole 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 the form."
Yeah, they were talking about expense deductions for self-employed.
And it wouldn't be rounding to a single dollar amount. It would be rounding all their expenses to an exact $10, or $100 or $1000. Things that are obviously not the exact number.
Being self-employed is the reason for my concern.
Thanks!!
Again, I wonder why turbotax doesn't let me enter the entire deductible amount.
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