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giksdifih3k399j
Returning Member

Added amounts from Box 1 of multiple W-2s not correctly rounded

I know it seems small but the incorrect rounding leads income to end in 0,000 which is a huge audit flag.

 

From IRS Form 1040 Instructions: "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."

 

When the two cents amounts are added (.48 & .44) it should cause the amount to round to the next dollar, moving the income number to 0,001, however the cents are just truncated.  In just messing around temporarily adjusting numbers, if either one of the values is .50, even when I reduce the other one to keep the income identical, it will then truncate.  I'm using the web-based premier version.  How do I get TT to properly round the numbers in line with the IRS guidance?

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4 Replies

Added amounts from Box 1 of multiple W-2s not correctly rounded

The IRS has a copy of your W-2’s so it will be apparent that you are reporting income properly. 

Added amounts from Box 1 of multiple W-2s not correctly rounded

each w-2 is entered separately and each would follow the rounding rules so wages on 1 of 5.48

and on the second 6.40  could be rounded to 5+6 = 11  not 11.88 rounded to 12

 

giksdifih3k399j
Returning Member

Added amounts from Box 1 of multiple W-2s not correctly rounded

Thank you for the response and I agree that they will have copies of the W-2's to verify.  My concerns are 1) however small, it is fundamentally incorrect on the return, and 2) there are a few other items on the return that could be red flags, but are legitimate, so I'm really trying to avoid any unnecessary scrutiny or being issued a CP05, which would delay the refund. 

giksdifih3k399j
Returning Member

Added amounts from Box 1 of multiple W-2s not correctly rounded

@Mike9241 From IRS Form 1040 Instructions it seem to explain that the numbers should be first added and then rounded and not the other way as suggested:

 

"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."

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