Income Reconciliation Bug in TurboTax Business 2022

Forum|Forum|3 years ago
March 8, 2023
1 reply
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Hello, I am using TurboTax Business 2022 version. In Step-by-Step mode, TurboTax showed both retained Earnings and Balance Sheet are in balance. The Income Reconciliation is not in balance. The Income Reconciliation Summary page showed a Total Book/Tax Differences of $6607. However, in the Form mode, the last section (after Line 10) in the Schedule M-1 showed "The difference between line 28 and Schedule M-1, line 10" is $1. Further digging in the form mode revealed the $1 difference is due to TurboTax rounding to the nearest dollar. The form mode shows a balanced income reconciliation if I account for the $1 rounding issue.

First question, how do I account/adjust for the $1 rounding so that the difference comes out to $0?

Second question, how can I get TurboTax to properly showed the $1 difference in the Step-by-Step mode instead of the erroreous $6607 amount? Thank you in advance for your time and assistance.

PatriciaV

Employee

Your best option is to use the Sch M-1 Worksheet (Forms Mode) to identify the Book/Tax differences. Then you can make whatever entries or corrections are needed to either eliminate the difference and/or the rounding error.

Remember in Forms you can change any numbers in a blue font. Green numbers were transferred from last year; black numbers are calculated and cannot be changed. If a number or box changes to red, click the Errors icon above the forms list to show the error in the form footer.

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