When filing Federal Income Taxes, do you round to the nearest dollar, or do you use exact numbers, cents included? My state tax book is telling me when i file state taxes to round. But i've searched the entire IRS handbook for federal taxes and have found nothing. Anyone have any idea?
2007-03-28 03:27:41 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You can round your numbers, as long as you are consistent. If the total is 49 cents or less, then round down. If it is 50 cents or more, then round up.
When they audit it, they are looking for large discrepancies, and not a few cents.
My accountant has done this for years, and have never heard a peep.
2007-03-28 03:32:48 · answer #1 · answered by pnk517 4 · 1⤊ 0⤋
Just round it off to the nearest dollar; It's a lot easier for the IRS to read.
Tax software will also round off automatically even if you put in the exact amount.
2007-03-28 03:35:16 · answer #2 · answered by Celeste 6 · 1⤊ 0⤋
You round to the nearest dollar amount, although I have filed a paper return in the past and NOT rounded off my numbers, so it may not be mandatory for your Federal return. If you file a return online, they automatically round the numbers off so you don't even have to worry about it.
2007-03-28 03:35:15 · answer #3 · answered by MarineMom 6 · 1⤊ 0⤋
See page 13 (15 as Acrobat counts) of pub 17. Your are given the choice of exact numbers or rounding. As it says on that page, you may round the numbers on the form, but if you have to add 2 or more items to get the number on the form, add first, then round.
2007-03-28 04:04:36 · answer #4 · answered by CarVolunteer 6 · 3⤊ 0⤋
Round to the nearest dollar so any thing above $.50 up, less round down....
2007-03-28 03:32:00 · answer #5 · answered by De 5 · 0⤊ 1⤋
It is your chioce, you can round off to the nearest dollar or use exact change on your federal return.
2007-03-28 03:36:20 · answer #6 · answered by hawkeefan 2 · 1⤊ 0⤋
round the numbers. I think the break is $.50, round down, everything else, round up. IRS doesn't recognize unrounded numbers on returns.
2007-03-28 03:35:30 · answer #7 · answered by Fancy That 6 · 1⤊ 1⤋
You have a good question that I have also researched to no avail and I have done taxes for many years. at .5 round up and anything under .5 round down. That is the way it has always been done and accepted and thereby sets what is called a precedent.
2007-03-28 03:51:51 · answer #8 · answered by acmeraven 7 · 1⤊ 3⤋