TurboTax Rounding Errors?

[zinger1457]

I’ve been using OLT.com the last few years to submit my taxes but use TurboTax online to verify the numbers. Didn't notice this in previous years but TurboTax does something unusual (IMO) when rounding off numbers provided on the ACA subsidy form 1095-A that it uses on IRS form 8962 to determine your premium tax credit. I imported my 1095-A form into TurboTax, the form lists the monthly cost (to the cent) and the annual totals. Instead of pulling the annual totals directly off the 1095-A form it appears TurboTax rounds each monthly number up/down then adds up the months to come up with their annual totals. Doesn’t make much sense to me since the annual totals are already on form 1095A. I can see rounding off the annual totals but the way they calculate it can result in up to a ~$6 difference from the actual numbers for each column. I was on the rounding up side so it cost me but others on the round down side might save a few dollars. OLT.com pulls the annual totals directly from form 1095-A for their calculations.

 

[bobandsherry]

I haven't seen the online version, but if memory serves the regular disc version has option to just input the total for the year vs monthly, provided that all months are the same values.

 

[zinger1457]

I haven't seen the online version, but if memory serves the regular disc version has option to just input the total for the year vs monthly, provided that all months are the same values.

The online version gave the option to input the first month then copy those values to the other months, didn't see an option to just put in the annual totals but I'll take another look. I tried both the manual 1095-A entry and importing the 1095-A PDF version, got the same rounding off issues with both.

 

[Animorph]

TT really likes to round to whole dollars everywhere. It's an option allowed by the IRS, so the TT calculations should be acceptable if not precise.

 

[braumeister]

A few years ago I used TurboTax and HR Block side by side to compare them.

It was interesting to notice that they used different rounding conventions, and the results differed by a few bucks.

 

[zinger1457]

A few years ago I used TurboTax and HR Block side by side to compare them.

It was interesting to notice that they used different rounding conventions, and the results differed by a few bucks.

Yea, it's not a big dollar issue, just thought it strange they would go through the monthly rounding calculation to determine the annual total when the annual totals are already on the 1095-A form, no need to do that calculation and introduce error.

 

[bobandsherry]

The online version gave the option to input the first month then copy those values to the other months, didn't see an option to just put in the annual totals but I'll take another look. I tried both the manual 1095-A entry and importing the 1095-A PDF version, got the same rounding off issues with both.

Yeah, my bad. It's the HR Block that gives option to input annual total.

 

[LOL!]

The last time I used TT it rounded incorrectly according to the IRS and the IRS reduced a refund accordingly.

I learned at the time that the IRS expected numbers to be unrounded until being placed on a tax form or something like that. This is analogous to what @zinger noticed: The sum of the unrounded months should be used, then rounded, as opposed to the rounded months being summed.

https://taxmap.irs.gov/taxmap/pub17/p17-006.htm#TXMP5d034bfb has this:

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.

It might be worth pointing this out to Intuit who makes TurboTax.

 

[lindalou]

I am seeing what I think is a rounding error in TT for my 2018 taxes. It's different than what the OP described - if I should open a new thread, please let me know.

The error is in our withholding on 1040 line 16 being $1 too high. MFJ and Fed withholding on our W-2s only - none on 1099s. Here are the last few digits:
Mine: 97.24
Spouse: 18.14
1040 line 16: 116.00


I even went back and put in zeros for the withholding cents, and the total is still 116. I've looked several times to find $1 withholding on a 1099, but I don't see any.


Any ideas on what is going on?


Tanks!