Tax Law (Questions About Taxes)/Form 1040
Bob wrote at 2011-04-10 11:55:11
But the 1040 instruction on page 17 says when you have two or more amounts to add to enter on a line you add the cents of the numbers and then round only the total.
shanrad wrote at 2011-12-22 17:01:10
According to IRS.gov, this answer is incorrect. The instructions for the Form 940 states: If you use two or more amounts to figure an entry on the form, use cents to figure the answer and round the answer only.
You were correct to take each actual figure, add them together, then round only the answer.
KG wrote at 2013-03-27 02:52:43
I believe the answer above is incorrect. You are supposed to add the unrounded numbers first. Then you round the total at the end.
The following is taken off the IRS website:
Rounding Off to Whole 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.