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I worked for Pitt Co Board of Elections for Primaries and for General Elections. My non employee comp was $847.53. TT says taxable income was $848.00. Why the difference?

 
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2 Replies
robtm
Level 10

I worked for Pitt Co Board of Elections for Primaries and for General Elections. My non employee comp was $847.53. TT says taxable income was $848.00. Why the difference?

This was due to the rounding of cents. Cents of .01-49 are rounded down to the lower dollar and cents of .50-99 are rounded up to the next dollar. This makes for simpler calculations not having to deal with cents and usually comes out fairly even,  maybe only a dollar or two either way at the end. This is allowed and encouraged by the IRS.

I worked for Pitt Co Board of Elections for Primaries and for General Elections. My non employee comp was $847.53. TT says taxable income was $848.00. Why the difference?

Thank you so much for the information. It is greatly appreciated. 

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