round for interest and div

Forum|Forum|3 years ago
March 5, 2023
7 replies
72 views

Why does not turbo tax round for interest and div on schedule B? Turbo tax do round for all other form but not schedule B.

I thought I have to choose either round or not round for all forms. Is there anyway I can change to round for schedule B?

I have small interest from foreign accounts. In past using other software, I reported the interest if it is over $0.50 as $1, and not reported if it is less than $0.49. Since schedule B is not rounding, I feel I have to report all interest even less than $0.49.

Monikak11

Level 2

You can round off cents to whole dollars on your return and schedules.

If you do round to whole dollars, round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar.

When the IRS sends notices of amounts not reported on tax returns, they drop the cents.

Please see this thread for another discussion of this topic.

Please see here for an IRS Chief Counsel advisory memorandum on the subject of rounding, which cites Treasury Regulations.

goro0614Author

Level 2

Hi MonikaK1,

Thank you for your answer.

If I want to round to whole dollar, I have to round everything. Eg, if I want to round for the interest from foreign accounts, I have to round(modify) for the interest/DIV which I imported from 1099-INT/DIV, correct? That is too much job for me... I may not round for schedule B. I just would like to confirm. Am I ok to use not round on schedule B, but round on other forms such as schedule D, this is how turbotax is doing though.

Monikak11

Level 2

The following information (from IRS Publication 17) may be useful in making the return easier to complete.

Rounding off dollars.

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.

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.

If you are entering amounts that include cents, make sure to include the decimal point. There is no cents column on Form 1040 or 1040-SR.

Equal amounts.

If you are asked to enter the smaller or larger of two equal amounts, enter that amount.

Negative amounts.

If you file a paper return and you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts.

The IRS drops cents when they compare information returns such as Forms 1099 with amounts reported on tax returns. You should round consistently on your tax return. An interest income amount of less than 50 cents is not going to result in an IRS notice.