Round money amounts to whole dollars (no cents)
Standard Rounding Rule: $.50 or more rounds up, less than $.50 rounds down
Look at the cents (decimal part)
50 cents or more → round up • Less than 50 cents → round down
$45.49 → $45
49 cents is less than 50, so round down
$45.50 → $46
50 cents exactly, so round up
$45.87 → $46
87 cents is more than 50, so round up
$99.51 → $100
51 cents is more than 50, so round up to next hundred
| Original Amount | Cents | Decision | Rounded |
|---|---|---|---|
| $12.23 | $0.23 | Less than 50¢ → Round down | $12 |
| $12.50 | $0.50 | Exactly 50¢ → Round up | $13 |
| $12.87 | $0.87 | More than 50¢ → Round up | $13 |
| $99.49 | $0.49 | Less than 50¢ → Round down | $99 |
| $99.99 | $0.99 | More than 50¢ → Round up | $100 |
| $1,234.56 | $0.56 | More than 50¢ → Round up | $1,235 |
Most IRS forms allow or require rounding to the nearest dollar
Income: $52,347.89 → Report as $52,348
Simplify budgets and financial forecasts
Monthly expenses: $2,847.63 → Budget $2,848
Many grant applications request whole dollar amounts
Project cost: $45,678.23 → Request $45,678
Improve readability of large numbers in reports
Revenue: $1,234,567.89 → Show as $1,234,568
Round to dollars when cents don't matter
Payment owed: $499.87 → Write check for $500
Donors often prefer clean, round numbers
Calculated donation: $247.35 → Donate $247 or $250
Rounding to the nearest dollar is a common practice in financial reporting, tax preparation, budgeting, and many other situations where cents-level precision isn't necessary. It simplifies numbers while maintaining reasonable accuracy.
The IRS explicitly allows (and in some cases requires) rounding to the nearest whole dollar on tax returns and forms. According to IRS guidelines: