Capital gains total is incorrect?

[elkinm]

I have a managed brokerage account which requires me to pay taxes on dividends and distributions.

I have two sets of capital gains, $5310.64 and $2606.35. The sum of these two values is $7916.99 or lets say $7917.

The total turbotax online gives me is 7920. Now even if it rounds up both values separately it would still only be 7918, not 7920.

This simple arithmetic error changes by refund by $1, which is not much, but I bet the IRS would have no issues causing issues for me for just a tiny miscalculation.

How can I have turbo tax calculate the correct amount, or can anybody explain the 7920 value.

[bosso3]

1) I can't explain what Turbotax is doing internally to compute your total, although I suspect it is ether a data entry error, or another small gain.

2)  I doubt that if you have an income discrepancy of $3 or so will affect your total tax bill.

15% capital gain tax rate on $3 = $0.45, which rounds down to $0.00.

3)  If you think it is worth the effort, you can

a)  recheck your data entry for each of your relevant 1099's

b)  review your schedule D to see what the entries actually show and what total shows on that form

c)  review your worksheet entries for your capital gains.  (Check Print Center >  Tax return and all calculation worksheets.

Good luck.

[DawnC]

It is probably due to the rounding of the numbers.   You have to look at the Qualified Dividends and Capital Gains Worksheet to see the full calculation.   TurboTax has an accuracy guarantee.   

All tax software has rounding issues.  The IRS understands it, and they ignore small discrepancies.   It's not a "huge flag" or even a small flag.   But again, the accuracy guarantee is in place in the event the rounding causes you to owe any penalties or interest.   

[Mike9241]

it could be that you have multiple entries for trades. each may be rounded.     there is no way the IRS will raise issues for a few dollar difference.  since rounding to whole dollars is allowed for any entry. 

and if you did your own rounding to come out with $7917, the IRS also would not raise an issue.