When I enter the estimated taxes paid, TurboTax rounds them to the nearest dollar. When I received the refund, the IRS did not round the estimated taxes, as a result the refund was not the same as the amount shown in TurboTax. TurboTax should not be rounding Estimated Taxes since the IRS expects the exact amount to be reported.
Yeah, I tend to agree....
BUT
I Always round the payments I actually make to the nearest $10, so my actual payments are always even $$.
No one can predict their taxes so closely ahead of time that the cents are valid in any way...so only pay even $$ amounts and then there is nothing to round.
True.
It did make me think though. Doesn't the IRS require rounding when you submit your forms? If so, they should allow you to round your estimated tax payments.
Estimated payments are optional to pay and you can pay any amount. If Turbo Tax prepares them they are just a suggestion and don't get sent to the IRS or state so they won't be expecting them. They are just ESTIMATES. Don't bother paying cents on them. Yes you can cross out the cents or amount and write in a new amount or just pay directly online to the IRS. If you have the Desktop program you can go into Forms and select different options like round to nearest 10 or 100. Or even print out the 1040 ES slips with your info but no amounts or with your own amounts.
And since I pay estimates the IRS always sends me prefilled 1040ES forms each year with my name and ssn but no amount. So I prepare them in Turbo Tax and just write the amount on the real ones the IRS sends me. Then they fit in the window envelopes.