Rounding is perfectly fine. In fact, TurboTax has to do it because IRS doesn't deal in cents, only whole dollars. Not a problem.
On my 2020 w2 if my wages is 24993.87 will turbotax round that up
Yes. The IRS wants rounded amounts and no cents. Does that make a problem for you?
No I was making sure when I put that 24993.87 will turbotax round up to 24994 that what it says on my view my AGI
U said turbotax will round my wages 24993.87 to 24994 right?
Yes, the wages will be rounded automatically or you can round them yourself. You do not have to enter the cents in any field, it's your preference.
IRS rules for rounding. 50 cents or more rounded up to the next nearest $. 49 cents or less just drop the cents.
I was making sure I dont want turbotax send me something bout my federal and/or state ben rejected
We are absolutely sure that rounding is OK with the IRS. Please continue with your return.
The IRS wants all amounts rounded. See IRS 1040 Instructions Page 22 3rd column Rounding off to whole dollars
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
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 un- der 50 cents and increase amounts from 50 to 99 cents to the next dollar. For ex- ample, $1.39 becomes $1 and $2.50 be- comes $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.
the IRS rule is you CAN round off.............NOT you MUST round off
But turbotax refuses to give the taxpayer the exact rule -- I do NOT want to round off..............i have seen where in my case it winds up costing me money more often than not..AND I cannot proof anything with my accounting records which are ACCURATE - NOT ROUNDED
this should be an OPTION- not a forced implementation - it causes more problems than it solves for many of us--amd using Home and Business edition -- we should be able to use the real numbers not this rounding baloney
i had a 7-cent mistake last year on pension income and the irs made me just through hoops for 3 months to get my refund. but did i learn anything? no i didn't. the pension plan is always 3-4 weeks late getting me the document so i again used my quicken figures and this year i was off by 8 cents. aha! says i, but you can round off! turns out you can, but you have to round off every figure and i had input cents to turbotax. so i check my 1040 and it looks like turbotax rounded off all the figures.
so why the fsck did i get yet another notice that my refund has been put on hold? fsck the fscking irs.
The IRS requires returns submitted to them be rounded to the nearest whole dollar. An IRS computer matches what is on your return to what was turned in by others. That catches your return for a hold until human eyes can look.
If your return is only off by $1 in rounding, it would not normally be an issue. However, since COVID, the IRS has pulled employees from many departments trying to get caught up with tax returns and many more issues than normal are popping up.
Reference: page 23 Instructions for Form 1040
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The IRS requires returns submitted to them be rounded to the nearest whole dollar. An IRS computer matches what is on your return to what was turned in by others. That catches your return for a hold until human eyes can look.
If your return is only off by $1 in rounding, it would not normally be an issue. However, since COVID, the IRS has pulled employees from many departments trying to get caught up with tax returns and many more issues than normal are popping up. <<<
so are you telling me that if my pension payout is $2311.08 and i put $2311 on the form that i'll get flagged or audited by the irs? last year i was off my 7-cents and i had to fax (FAX!) my form in to them and they had the form and turbotax had the form and i had the form and everyone already had the fscking form! why am i being singled out for pennies when the well off skate through with millions of dollars in deliberate errors?
if this was true, could humans not tell it was an error of pennies and not some domestic terrorist refutation of the irs? this sucks wind.
i can't see how my filing could be much simpler. i have social security and they withhold a percentage by design so i can get money back every year. i also have a tiny pension from before 401k days and it's so small i don't have taxes withheld from it. so two sources of income with only one of them with tax withholdings. i mean it takes up like a half-dozen lines in the 1040 form. and yet they choose for fsck with me--someone who couldn't cheat them out of $100, much less a million dollars.
this is what the status says as of this morning:
"We apologize, but your return processing has been delayed beyond the normal timeframe.
You can continue to check back here for the most up to date information regarding your refund.
We understand your tax refund is very important and we are working to process your return as quickly as possible. Please read the following information related to your tax situation: Tax Topic 152, Refund Information"
this is exactly what it said last year when they made me jump through every hoop in existence to get my refund.
Could I get some more help on rounding? I get that the IRS rounds, but for a 1099Q form where boxes 2 and 3 must add up to box 1, now rounding is a problem. If i round the three amounts based on the 50 cent rule, boxes 2 and 3 do not come out to box 1's rounded value. Am I supposed to improperly round? I cant get past the screen unless I do.
For example, if
box 1 = $30.68
box 2 = $16.44
box 3 = $14.24
the IRS sees it as $31, $16, $14. But $16+$14 does not equal $31. So am I supposed to improperly round box 1 and say it is $30 instead of $31?
Round Boxes 2 and 3 so that they equal to Box 1.
I suggest Box 3 be entered as 17.00
If this distribution was used for education expenses, none of the numbers will go anywhere.
If the distribution is at all taxable, you will be tax properly relating to the 16 dollars of earnings in Box 2.
I had two 1099-SA forms that had 1091.41 and 2153.49 and added up to round to $3245.
Then when TTax subtracted only $2153 later, it had 1092 for how much was taken out, and only 1091 to legitimate medical expenses, so I had $1 of Taxable distributions. AARGH!
So TTax takes the forms from the provider and doesn't round there, but then rounds after that causing problems.
I ended up changing one of the SA's to have 1091, and this fixed it. Hope I don't get into trouble.