Instead of making dollars-and-cents entries on your federal tax return, you may round off your entries into whole dollar amounts. If you choose to round any entry you must use rounding on all forms and schedules you include with your return. Using this method is relatively simple, but a special rule applies when you include more than one item in a line entry calculation.
Round amounts of 50 cents or more up to the next whole dollar. For example, if your actual amount is $100.60, enter $101.00.
Round amounts of less than 50 cents down to the next whole dollar. For example, an actual amount of $200.43 is rounded down to $200.00.
Round sums rather than the figures used to reach them. For example, if you have more than one Form W-2 from which to enter "Wages, salaries, tips, etc." on line 7 of Form 1040, add the actual amounts shown in Box 1 of each W-2 first. Round the sum to the nearest whole dollar and report that amount on line 7. Do not round Box 1 figures before combining.
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