Line 5b 1040 (pensions) - rounding before summing

[Viking_76NW]

I have 2 pension 1099s. If I sum the gross amounts, including cents, I get a number that is one dollar higher versus rounding each gross amount first, then summing. it appears that TurboTax is going the latter.

BTW, the two pensions are actually from the same company with identical gross amounts. My former employer switched to a different bank for pensions mid-year. So I didn't have this issue prior to 2022 tax year.

My understanding is that the IRS doesn't want numbers that are summed for a particular line in the 1040 return to be rounded prior to summing. The sum itself may be rounded.

It's only $1, but I don't want my return to be held up. I could add just 4 cents to the gross amount for one pension 1099 to fix the issue, but then that number won't match the 1099. Not clear to me if these TT inputs are transmitted. The individual 1099 numbers don't appear in the return.

Should I just ignore the minor discrepancy or apply the fix?

[VolvoGirl]

If you have a problem efiling  from the same EIN and amounts then you can increase one by $1 and decrease the other one.  You can make them different.  

[Viking_76NW]

The payer TINs are different. I haven't transmitted my return yet. The discrepancy shouldn't prevent that. I tried to edit my original post to make it clearer, but for some reason nothing happens when I select edit.

I expect my pension sum for line 5b to be $1 higher. I input the numbers from the 2 1099s. It looks like TT is rounding each number down before summing, since it seems very unlikely TT is adding 2 identical numbers incorrectly.

Example: each pension amount is $22222.46. If I sum I get $44444.92. If I then round the sum is $44445.

But TurboTax producing a sum of $44444 on line 5b. It appears to be rounding first, then adding.

Do I adjust one of my 1099 inputs or just live with the $1 discrepancy?

[Viking_76NW]

Well, it's still unclear to me what I should do. I got one response that appeared to suggest I could adjust both numbers to get what I think is the correct sum.

But after doing more searching, I discovered other 1099-R rounding posts. Some experts suggested that it is standard practice for software to round individual 1099-R numbers before summing, and that the IRS expects it. A few folks suggested making adjustments to individual entries to get the desired result. One expert claimed that all tax software rounds each 1099-R. One responder said this may be documented in a software technical manual, even though it appears to differ from the 1040 instructions (round only after summing).

I will allow a little more time for further responses, but I will probably e-file with what I think is a $1 discrepancy. It won't affect the amount of my refund. I will provide an update as to whether or not there were any issues afterward.

[AmyC]

The IRS expects each entry rounded to the nearest dollar. The IRS does not accept cents. Therefore, the $1 difference is correct and there will not be a problem.

[John-Kris]

I do not belive it is correct to say the IRS does not allow cents. My refund on TurboTax was $353 but the IRS deposited $352.55 This was caused by TurboTax incorrectly rounding a number ending in $.55 up to a full dollar but the IRS DID use the cents and sent the correct refund. 

TurboTax needs to allow users to select NO ROUNDING!

It's a computer, it does care about even dollars and the user should be allowed to decide.