I have entered my wages and turbo tax has rounded up the amount. It's only 25 cents, but it makes me nervous

[AmyC]

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 

@gteague 

[gteague]

>>> 

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. 

[gteague]

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. 

[gteague]

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. 

[asmith1915]

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?

@BillM223 

[KrisD15]

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. 

[WST2]

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.