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Path: utzoo!watmath!clyde!burl!ulysses!harpo!seismo!brl-vgr!wmartin
From: wmartin@brl-vgr.ARPA (Will Martin )
Newsgroups: net.taxes
Subject: Rounding or exact -- which is better?
Message-ID: <2427@brl-vgr.ARPA>
Date: Mon, 12-Mar-84 13:38:05 EST
Article-I.D.: brl-vgr.2427
Posted: Mon Mar 12 13:38:05 1984
Date-Received: Tue, 13-Mar-84 08:54:59 EST
Organization: Ballistics Research Lab
Lines: 18


I have always figured my returns out to the exact cent. The couple years
we had a CPA do ours, due to having a business during that time, I
noted that he figured using the option (described in the instructions)
of rounding to the even dollar amount.  Has anyone seen any published
figures which show which method will average out best for the taxpayer?

Using the percentage computation basis, it could only save at most a dollar
each return, but better a dollar kept in my pocket than sent to the taxman...

Using the Tax Tables, though, it can be of more importance, it seems.
This year, a few cents made a big difference; I came out only a
few cents under a cut-off point in the Tax Tables, which saves $11
or so.  Rounding would have put me in the next range.

Will Martin