Form 941-X, the Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund Form, is crucial for correcting errors on previously filed Form 941. This guide provides detailed instructions on how to accurately complete and file Form 941-X for the 2024 tax year, ensuring compliance with the latest IRS updates and regulations
Table of Contents
Form 941-X is used to correct errors on a previously filed Form 941. Corrections can include:
Employers must file a separate Form 941-X for each Form 941 being corrected. Ensure you have filed all applicable Forms W-2 and W-2c with the SSA before submitting Form 941-X.
Form 941-X consists of five parts. Follow the instructions to correct errors in previously filed Form 941:
1. Adjusted Employment Tax Return: Check this box if correcting underreported or overreported tax amounts and using the adjustment process.
2. Claim: Check this box if correcting only overreported tax amounts and claiming a refund or abatement.
3. Filing Forms W-2 or W-2c: Certify that you have filed or will file corrected Forms W-2 or W-2c with the SSA.
4. Certifying Overreporting Adjustments: Certify overreporting adjustments for federal income tax, Social Security tax, Medicare tax, or Additional Medicare Tax.
5. Certifying Claims: Certify claims for refund or abatement of overreported amounts.
6. Wages, Tips, and Other Compensation: Correct errors in wages, tips, and other compensation.
7. Federal Income Tax Withheld Correct federal income tax withholding errors.
8.Taxable Social Security Wages: Correct taxable Social Security wages.
9. Qualified Sick Leave Wages: Correct qualified sick leave wages.
10. Qualified Family Leave Wages: Correct qualified family leave wages.
11. Taxable Social Security Tips: Correct taxable Social Security tips.
12. Taxable Medicare Wages & Tips: Correct taxable Medicare wages and tips.
13. Taxable Wages & Tips Subject to Additional Medicare Tax Withholding: Correct Additional Medicare Tax withholding errors.
14. Section 3121(q) Notice and Demand—Tax on Unreported Tips: Correct any amounts reported on Form 941 line 5f for tax due from a Section 3121(q) Notice and Demand.
15. Tax Adjustments: Correct adjustments reported on Form 941 lines 7–9.
16. Qualified Small Business Payroll Tax Credit for Increasing Research Activities: Correct the payroll tax credit reported on Form 941 line 11a.
17. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages: Correct the nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2020, and before April 1, 2021.
18a. Nonrefundable Portion of Employee Retention Credit: Correct the nonrefundable portion of the employee retention credit for qualified wages paid after March 31, 2020, and before July 1, 2022.
18b. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Wages: Correct the nonrefundable portion of the credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021.
18c. Nonrefundable Portion of COBRA Premium Assistance Credit: Correct the nonrefundable portion of the COBRA premium assistance credit.
18d. Number of Individuals Provided COBRA Premium Assistance: Correct the number of individuals provided COBRA premium assistance.
19. Special Additions to Wages for Federal Income Tax: Correct wages for workers reclassified under Section 3509 rules affecting federal income tax withholding.
20. Special Additions to Wages for Social Security Taxes: Correct wages for workers reclassified under Section 3509 rules affecting Social Security taxes.
21. Special Additions to Wages for Medicare Taxes: Correct wages for workers reclassified under Section 3509 rules affecting Medicare taxes.
22. Special Additions to Wages for Additional Medicare Tax: Correct wages for workers reclassified under Section 3509 rules affecting Additional Medicare taxes.
23. Subtotal: Combine the amounts from column 4 on lines 7–22.
25. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021: Correct the refundable portion of the credit.
26a. Refundable Portion of Employee Retention Credit: Correct the refundable portion of the employee retention credit.
26b. Refundable Portion of Credit for Qualified Sick and Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021: Correct the refundable portion of the credit.
26c. Refundable Portion of COBRA Premium Assistance Credit: Correct the refundable portion of the COBRA premium assistance credit.
27. Total: Combine the amounts from column 4 on lines 23–26c.
28. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021: Correct the qualified health plan expenses.
29. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2020, and Before April 1, 2021 Correct the qualified health plan expenses.
30. Qualified Wages for the Employee Retention Credit:Correct qualified wages for the employee retention credit.
31a. Qualified Health Plan Expenses for the Employee Retention Credit: Correct qualified health plan expenses allocable to wages for the employee retention credit.
31b. Recovery Startup Business Checkbox: Check this box for the fourth quarter of 2021 if you qualify as a recovery startup business solely for the employee retention credit.
32. Credit From Form 5884-C Line 11 for This Quarter: Correct the credit from Form 5884-C line 11.
35. Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021: Correct the amounts under certain collectively bargained agreements allocable to qualified sick leave wages.
36. Qualified Health Plan Expenses Allocable to Qualified Sick Leave Wages for Leave taken After March 31, 2021, and Before October 1, 2021: Correct the qualified health plan expenses.
37. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Sick Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021: Correct the amounts under certain collectively bargained agreements allocable to qualified family leave wages.
38. Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021: Correct the qualified health plan expenses.
39. Qualified Health Plan Expenses Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021: Correct the qualified health plan expenses.
40. Amounts Under Certain Collectively Bargained Agreements Allocable to Qualified Family Leave Wages for Leave Taken After March 31, 2021, and Before October 1, 2021: Correct the amounts under certain collectively bargained agreements allocable to qualified family leave wages.
41. Corrections of Both Underreported and Overreported Amounts: Provide a net change amount.
42. Reclassification of Workers: Explain the reclassification of workers if applicable.
43. Detailed Explanation: Provide detailed explanations for each correction, specifying the Form 941-X line numbers, the date the error was discovered, the amount of the error, and the cause of the error.
Ensure all five pages of Form 941-X are completed and signed. The appropriate individual must sign the form based on the type of business entity. Failure to sign will delay processing.