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Many times, you may find that while preparing your income tax return, it is easier to “round off” your numbers. This means that instead of having cents, the figures you prepare your tax return with will have only whole dollars. If the figure involved is below 50, round it down to the next lowest dollar. If the figure involved is above 50, round it up to the next highest dollar. For example, if the figure is $7.49, you would round it down to $7.00. If the figure is $7.51 you would round it up to $8.00. Be certain that if you choose to use “rounding off”, that you do it throughout your tax return and schedules. You cannot round off one portion and not the next.
|Jennifer Mathes, Ph.D.|