Control Totals and Rounding in 1042-S
To display all totals in 1042-S Express, access the Options menu and select "Total all Records." A dedicated totals page will then appear.
Unlike 1099 Series Forms, the IRS imposes specific rounding rules for monetary amounts on Form 1042-S.
1042-S Express software automatically performs all necessary rounding calculations, eliminating the need for manual intervention. While most financial transactions
involve dollars and cents, the IRS mandates that monetary values be stored internally without pennies. To ensure compliance, the software rounds amounts up or down
as required.
Consequently, the totals generated within 1042-S Express may not align precisely with external totals, such as those calculated in Excel, unless the Excel data has
been rounded prior to import. If exact reconciliation is desired, the Excel ROUND function can be used to round dollar amounts before importing them into the software.
The following is exerts from the IRS documentation
Page 32, Publication 1187
"[07] Report income and tax....... in whole dollars only. Round up or down as appropriate. To round off amounts to the nearest whole dollar, drop amounts under 50 cents
and increase to the next whole dollar amounts of 50 to 99 cents. If you have to add two or more amounts to figure the amount to be reported, include cents when adding
to be reported. Do not enter cents."
For more information: Publication 1187 (Rev 12-2023)