Due to Turbotax rounding the total income and every deduction section, my Waveapps books do not match the Reconciliations (Income, Retained Earning, Balance Sheet) and is off by a little less than 3 dollars.
My concern is the discrepancy compounds every year and in a few years maybe my retained earnings starting balance is off by 10 dollars (this is my first year and I'm not sure if TT carries this over for next year for me). While this rounding is expected and IRS permits it, what is the best course of action?
Decrease expense deductions by 3 dollars in one category so books match Turbotax (even if not accurate)
Just submit it as is with Turbotax's calculated profit/loss off < 3 dollars from books
Hypothetical numbers:
Waveapps books profit/loss: $100,236.78
Waveapps Retaining Earning: $30,251.54
Turbotax profit/loss: $100,234
Turbotax Retained Earning: $30,254
Also another question is what deduction category to put mortgage interest paid by accountable plan? If I add it to "Interest expense", it requires another form attachment. Is it ok to put it in "all other expenses" and add a category?
You might only want to round the sum rather than each individual entry.
I'll also page @Rick19744 for input.
I have not rounded any value myself. For example for common business expenses, if you put $5,000.75 from your books Turbotax rounds to $5001. For Taxes and Licenses, if you put $250.49 Turbotax rounds to $250. Then it adds each deduction category and the discrepancy grows further.
To address your questions: