Bottom line: the correct data ultimately was filed with the IRS. I infer that the same observations would be made in the case of 1099-INT, 1099-DIV or 1099-B. Before doing so, I reviewed my on-line data, the TurboTax worksheets, and the draft Return. I filed my 2020 Income Tax Return last week using TurboTax online. Though perhaps now moot (see paragraph 3, below, below), the competitor was TaxAct. Therefore, I am making my reply under a different User Name and as a comment to my own earlier comment.
TURBOTAX 1099 HOW TO
I had enormous difficulty figuring out how to log-on to my account using earlier User Name and equally as difficult a time trying to figure out how to post a reply to email inquiry. Sorry for delay in reply to email received informing me that it was OK to post link to competitor's website and asking if I could do so.
TURBOTAX 1099 SOFTWARE
Thus, at least in my case, it appears that the TurboTax software does reconcile the totals of the rounded individual line entries with the aggregate bottom-line entries having done so, it created an issue that its competitor addressed head on and resolved in a manner that it deemed to have been appropriate. However, instead of defaulting to the original, pre-rounded line entries to arrive at the aggregate bottom-line total, TurboTax appears to have totaled the amounts of the individual line-entries, as rounded. Having entered my data in TurboTax, my observation is that it also rounds each individual line entry (in my case, for capital gains). The competitor further noted that their tax software had been approved by the IRS and that no objection had been made to their software. Since both the line entries and the aggregate were required to be reported, both could be rounded, regardless of whether or not the totals of the line entries, as rounded, reconciled with the aggregate total (rounded only after all of the original individual line entries had been added). However, according to the competitor, IRS rules also permitted rounding of any data required to be separately reported to the IRS. The competitor's response was this: IRS rules required that rounding be done only after the individual line entries had been aggregated.
Moreover, the pre-aggregate rounding appeared to be contrary to the IRS rule that rounding occur only after all of the individual line entries be aggregated. Somewhat incongruously, the sum was greater than the total of its parts. Having done so, the total of all of the rounded dividends reported as line entries differed from the aggregate total of all of the rounded dividends. The competitor's tax software rounded the amount of each dividend reported as a line entry on Form 1099-DIV, and then rounded the aggregate bottom-line total of all dividends reported on Form 1099-DIV. I am not a tax expert, but just someone sharing some info that may be of interest. Since this is my first post here, I am not sure if I am allowed to mention the competitor by name or to provide a link, but it should be easy enough to find. Ironically, I found what may be an authoritative answer posted by a TurboTax competitor, on the competitor's website, in response to an inquiry made by one of its customers. Hope either TurboTax deals with this or I will need to explore other options. My 1099-B has some adjustments under 1-g so I believe I cannot just summarize the total in 1 line. Seems like this is only this year issue - I found another discussion post on Intuit community mentioning that. Now I understand the rule of rounding number from the IRS, but rounding number on transaction level when having this many sales is making the total number very skewed and doesn't make sense. I do have quiet a lot of transactions as I was playing around with trading this year. When I checked again now every sales transaction seems to be rounded to the whole dollar. However, when I proceed further the total number was showing different - Net Gain/Loss off by $400, Proceeds and Cost Basis also showing different from my 1099-B. After the initial import all the sales look correct: showing 2 decimal at first and total was correct. Not sure if this is proper but I recall someone also reported FreeTaxUSA 1099-B bug so I figure someone would be interested.įor context, I was trying to import my 1099-B directly from my broker to TurboxTax.
TURBOTAX 1099 PC
Just want to give a head-up for anyone planning to use TurboTax PC to import 1099-B for their tax filling.
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