Using Turbo Tax for Tax Year 2019. I have two 1099-R forms to enter reporting early distributions from two different IRAs. These two IRAs are in my 72(t) universe. When Turbo Tax adds the balances up, it is rounding down the two amounts first, and then adding them up, which ends up rounding down the total amount. Last year (2018), I only had one 1099-R form, and the amount was rounded up. Since I am taking the early distributions from my IRAs as a part of a 72(t) "Substantially Equal Periodic Payments" plan, I want the amounts to match exactly, year over year. In this case, the amount reported on this years return is $1.00 less than last year. I do not want to "bust" my 72(t) plan due to a Turbo Tax rounding error. Thoughts?
This is due to how the IRS allows software to round each individual number instead of only rounding the total. I would round the numbers yourself as you enter them instead of entering the dollar and cents. This way it will come out exact.
Why are software programs allowed to round differently than the general guidelines for rounding (do not round until after adding them together)?
ALLOWING rounding and FORCING rounding are two very different things
Turbotax is FORCING ALL TAXPAYERS TO ROUND _ WHETHER THEY CHOOSE TO DO SO OR NOT
THIS IS WRONG- NEEDS to be fixeD
NO THANKS-- forcing us to round is not correct -- i have no interest whatsoever in paying any additional tax- and that is what this rounding issue is causing for me
Turbotax has no integrity if it refuses to allow taxpayers to enter their data accurately
I am encountering rounding on many forms this year-- not only in what turbotax ultimately puts in the taxform- but even in some of the worksheets where I am totalling several entries-- and it does not even leave my original entry in place-- it replaces my accurate entry with the turbotax rounded number --- often resulting in totals that are several dollars off of reality-
This is not a Turbo Tax policy. The IRS requires that numbers are rounded to the nearest dollar if .50 or less. In addition, .51 cents or more, round up. IRS generally just chops off the change off the end, they don't round. This has nothing to do with the integrity of Turbo Tax but has everything to do with IRS guidelines. Please view this IRS link under the heading of Rounding Off Numbers.