turbotax rounds negative numbers incorrectly

[brctt1]

Turbotax rounds negative numbers incorrectly:

  -126.77 rounds to -126.00.  The correct rounded value is -127.00

  -920.73 rounds to -920.00.  The correct rounded value is -921.00

This is seen on TT forms 1099-B Wks, on Form 8949, and the error propagates to Schedule D.  Most likely it affects every value that TT rounds when the value to be rounded is negative.

[fanfare]

the rounding rule:

when cents are 50 or more, round up.

-126.00 is greater than -126.77.

Does that satisfy you ??

@brctt1 

[brctt1]

Agreed, that the IRS definition of "rounding" can lead one to round negative numbers incorrectly, but it goes against the rounding rules of basic arithmetic.   You quoted IRS pub 15 in June 2019  in reply to another thread about rounding  :

fanfare wrote on June 1 2019: Please see IRS Pub 17 Computations on page 13. I think this also addresses the issue with 1095A.
" 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."

The correct approach is to round the absolute value of the number.

That way $2.50 becomes $3, and -$2.50 becomes -$3.

This is the approach that is arithmetically / mathematically correct.

[fanfare]

on 1099-B cost and proceeds should not be negative.

The  wash sale adjustment is positive also.

I know some brokers 1099s show negative amounts but I don't think that is correct.

if you use aggregation, the subtotals are entered by you and will match your consolidated 1099-B, I hope.

the issue of rounding becomes moot.

@brctt1 

[brctt1]

These negative values were long-term and short-term capital losses (form 8949 Box A and Box D)

The rounding made no difference in my case, but for someone with many capital loss values, the errors could add up (or perhaps most likely just average out to no difference in most cases).

It makes sense that the IRS would avoid complicating things in their pub 15 with too many details of how to round negative numbers, but TurboTax is a software program and it should use the arithmetically correct method.

Anyway, thanks for your good info on pub15, etc.

[brctt1]

Correction - IRS Publication 17 has the info on rounding, on p14 under Computations, Rounding off dollars.  You had it right in your earlier post.  

Makes sense for IRS not to get too complicated in explaining to the general public the arithmetically correct way to round negative numbers, but software programs like TurboTax should do it the right way IMO.

[fanfare]

if you use parenthesis as mentioned in the IRS Pub, this is like a curly absolute value sign.

then the rounding is the same as for positive numbers but the total is subtracted.

I was a programmer but no longer, I could write a test program to see how C or JAVA rounds  -126.77, but I'm not sufficiently motivated.

maybe somebody knows already.

@brctt1