Turbo Tax rounds my estimated taxes, keeps causing a CP24 IRS letter. How can I put in exact amount without rounding? Should I total it up myself and then round down?

[Mike9241]

the IRS says you can round 50 cents or more up to the next whole $.  49 cents or less down to the next whole $

TT only allows whole $ and rounds automatically according to the above rule.   so if you want to get around this issue round one of the payments.   check what the IRS is showing, I have to doubt the IRS would issue a notice for what at most would be a $2 difference. 

[SteamTrain]

....are you talking about yoru Quarterly Estimated taxes that you paid during the year?

If so....don't pay them with amounts including cents in the first place.  Just round each payment up to the next highest $1 or $10.  When you calculate your estimated payments, you don't have to pay the exact amount calculated...they are "estimates" and rounding up is perfectly permissible  (I round up to the next $100)

[Critter-3]

Agreed ... I have never heard of anyone not  rounding up to at least the next whole number.  Most will round to the next 10 or 100.   So 75.60  would round to  76 or  80  or 100 depending on what your needs are.  Going forward feel free to round up.

[c2computer]

Thanks for responses. The problem is that QBSE makes the payment through the website to IRS.  IRS then shows the numbers for each quarterly payment down to the penny. When they sent me the letter, it showed my payments were $1446.91 and Turbo Tax shows $1448.00 on the tax form.  The refund was for $861 per TT but IRS changed it to $859.91.  Yes, I agree it is ridiculous but that's what the letter shows. I think what I am going to do is add up all my payments for the year and put it in as one payment for the Turbo Tax purposes, allowing it to round to the nearest dollar instead of allowing Turbo Tax to round each of the 4 entries (this is what causes the issues.)  I just can't believe I am the only person with this issue, I was shocked when I got the letter last year for such a small amount but the amounts shown by IRS I can't control since Turbo Tax pulls them in from QBSE and rounds each one of them.  Since there is only one entry for the total estimated taxes for the year I am just going to put in the number that all 4 add up to and round it off.  Thanks for the replies.

[c2computer]

Thanks, I would do that but we use QBSE for my wife's job and it sends the payments to the IRS down to the penny.  IRS shows on the letter the 4 payments down the penny.

[c2computer]

Yes, agree on the rounding except Turbo Tax rounded each of the 4 payments made by QBSE individually and therefore the amounts didn't correspond with what the IRS shows for the 4 payments.  I think its best to add them all up and then round it off and put in one entry which is what is show on the tax form (it doesn't show 4 payments, just the total for the year.)

[Critter-3]

I would never ever let the QB program make the payment for me so I have no idea how to fix this.   

Look around the QB settings  to see if you can round the estimates  or better yet make them yourself on the IRS website so you have control over this situation.  

[c2computer]

I called the IRS ([phone number removed]) regarding this and they informed me that since Turbo Tax rounded up each amount and then added all 4 together instead of adding up all 4 payments first, then rounding up or down, the math was off.  The amount was more than what the IRS had in their records, even though small, it caused a flag to be raised and that's why I got the form.  So this year, I am forcing the # to be what my total is and then rounding up or down. Hope this helps someone else. Thanks for everyone's replies.

[Mike9241]

a bigger question is why TT would round $1446.91 to $1448 proper would have been $1447.

[c2computer]

Turbo Tax rounded up each individually and then added those numbers up tp come up with $1448.00.   $131+$272+$477+$578 = $1448.  IRS saw a total of $1446.91 on their side so since I claimed to have made more payments than they received in the year so it raised the flag.  The letter itself is just telling you that your math is wrong, we are adjusting the refund and if you accept this, just ignore it and wait for refund. I just don't like getting letters in the mail from the IRS.

Actual Payments:

Date Description Amount Category
04-02-2019 Estimated Taxes Q1 2019  $131.13 Estimated taxes
06-07-2019 Estimated Taxes Q2 2019  $271.59 Estimated taxes
09-04-2019 Estimated Taxes Q3 2019  $466.56 Estimated taxes
01-07-2020 Estimated Taxes Q4 2019  $577.63 Estimated taxes

$ 1,446.91

[retflavet]

Well I have a surprise for all of you the IRS sent me a letter for my 2021 federal tax return citing my error for incorrect estimate tax that I input into my Turbo Tax.  Every quarter I pay estimate tax of, for example,  98.51 and of course turbo tax on the application form1040ES the calcuations page rounds that off/up to 99.  Where is the IRS regulations does it say rounding off of estimate tax is allowed?

I called TurboTax support and talked for over 2 hours to their call center asking for an override or work around. The person was very hard to talk with and I finally gave up because I had other appointments.  I asked to leave my TurboTax case [phone number removed] open so I would be able to refer to it BUT after I hung up I received an email stating the case was CLOSED!!!

I request Turbo Tax do a fix on their 1040ES form under the Deductions and Income, Federal Estimate tax paid boxes.  Even when I double click the box to open up the small item box and enter 98.51, for example, then close it, the sum of 99 appears.

IRS scolded me on this point with a letter which costs them more to send then my error.

Please help Thanks

[fanfare]

@retflavet 

"please help"

Live and learn.

Use whole dollar amounts for your  estimated tax payments

[Critter-3]

LOL ... I  have never seen anyone send in an estimated payment with cents in it ... just always use whole dollars.   I cannot even imagine the TT program populating estimated forms using cents ... it would always use whole dollars. 

[SteamTrain]

Heck...I just pay even 100's .   No one can figure estimated taxes out that close anyhow . (yeah, never say never)