medical expenses worksheet line 2B

[user17727221511]

The amount on line 2b of the medical expenses worksheet does not match the amount on my 1095-A.  I do not have a schedule 1 or a schedule C, and Part II of schedule 3 is blank.  The difference is only $5, so I doubt it makes any significant difference, but I would like to understand why the numbers don't match.

Just had an epiphany, it looks like Turbo tax is calculating the amount on line 2b by adding the rounded amount of the 12 monthly premiums from the 1095-A instead of the Annual total from the 1095-A.  For example, my monthly premium was XXX.40.  The amount on the worksheet reflects XXX x 12 instead of XXX.40 * 12.  Seems like a bug to me.

[RobertB4444]

The way the IRS requires that the tax forms be filled out is that all numbers entered are rounded to the nearest dollar.  So TurboTax follows that protocol and rounds all of the numbers that you enter to the nearest dollar.  

[user17727221511]

While I agree that the IRS requires numbers to be rounded, I believe that the total amount of my insurance payments should be rounded, not the monthly payment.  Assuming a monthly premium of $1.40, there is a significant difference between rounding each payment and rounding the total.

Round each payment:

$1.40 rounds to $1.00 times 12 months = $12.00

Round the total:

$1.40 * 12 = $16.80 and rounds to $17.00

Alternately the 1095-A should reflect each payment being rounded instead of the rounded total.  I would expect my schedule A to reflect the total from the 1095-A, not a recalculation based on the rounded monthly payments.  Or at least I BIG note identifying why the values don't match.

[MonikaK1]

The IRS requires that, IF rounding is used, it must be used consistently. The IRS policy on rounding is referenced in Notice 1036, which includes tables for income tax withholding:

If rounding is used, it must be used consistently. Withheld tax amounts should be rounded to the nearest whole dollar by dropping amounts under 50 cents and increasing amounts from 50 to 99 cents to the next dollar. For example, $2.30 becomes $2 and $2.50 becomes $3.

It is also referenced in the Instructions for Form 8949:

You can round off cents to whole dollars on Form 8949. If you do round to whole dollars, round all amounts. To round, drop cent amounts under 50 cents and increase cent amounts over 49 cents to the next dollar. For example, $1.49 becomes $1 and $1.50 becomes $2.

Yes, following the IRS rounding policy, the total of several rounded entries may vary from the total of all of the actual numbers in the sum.

@user17727221511