My tax software tells me to use this rule for rounding: "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."
That's what I did.
The IRS transcript simply seems to drop off all the cents, regardless. So if my 1099r shows 1234.98, my tax transcript shows $1234, not $1235.
Since I received three relevant forms, my tax return is off by $3 (tax transcript dropped off cents three times), while I rounded up to the dollar three times.
Is the tax software rounding rule wrong? I just don't want to receive a letter/mail correspondence from some silly automated IRS algorithm/bot over a measly $3.
That's what I did.
The IRS transcript simply seems to drop off all the cents, regardless. So if my 1099r shows 1234.98, my tax transcript shows $1234, not $1235.
Since I received three relevant forms, my tax return is off by $3 (tax transcript dropped off cents three times), while I rounded up to the dollar three times.
Is the tax software rounding rule wrong? I just don't want to receive a letter/mail correspondence from some silly automated IRS algorithm/bot over a measly $3.
Statistics: Posted by Caduceus — Mon Sep 02, 2024 11:02 am — Replies 3 — Views 124