I've ran all the checks and started the filing process in TurboTax. I was at the stage where I can view the forms generated. On the 1040 that is generated, line 25a has a value of $79.
However, the W-2s I entered into TurboTax have amounts of $23.17 and $56.46 which adds up to $79.63 and should be rounded to $XX80.
The instructions for rounding from the IRS say "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".
Anybody seeing this error? Should I enter in wrong numbers in my W-2 to ensure line 25a is correct when e-filing? Is there a way I can force TurboTax to enter in or recalculate the correct number?
No, you should not enter wrong numbers in your W-2. The IRS receives the W-2 and a difference in those numbers will flag before a rounding issue. A few cents on the bottom of your return will not be an issue.
Under Computations in Pub 17, the IRS states that 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 under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.