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Geomguy
Returning Member

Is turbotax putting me at risk for audit?

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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4 Replies
PattiF
Expert Alumni

Is turbotax putting me at risk for audit?

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."

 

 

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Geomguy
Returning Member

Is turbotax putting me at risk for audit?

One of a number of articles this year about rounding numbers...
Again why does turbotax not allow the entire amount?
Round numbers are a tipoff that you’re just making these numbers up.
Preeti Shah
CFP and CPA at Enlight Financial

Is turbotax putting me at risk for audit?

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.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
Geomguy
Returning Member

Is turbotax putting me at risk for audit?

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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