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Department of the Treasury  
Internal Revenue Service  
Instructions for Form CT-1 X  
(Rev. March 2024)  
Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund  
Section references are to the Internal Revenue Code  
unless otherwise noted.  
Contents  
instructions don't discuss who is eligible to claim the credit  
for qualified sick and family leave compensation, the  
employee retention credit, or the COBRA premium  
assistance credit. The current Instructions for Form CT-1  
are available at IRS.gov/CT1. If you need a prior revision  
of the Instructions for Form CT-1, select the link for "All  
Form CT-1 Revisions" under "Other Items You May Find  
Useful."  
Page  
Future Developments . . . . . . . . . . . . . . . . . . . . . . . . 1  
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1  
General Instructions: Understanding Form CT-1 X . . . . 3  
What Is the Purpose of Form CT-1 X? . . . . . . . . . 3  
Where Can You Get Help? . . . . . . . . . . . . . . . . . . 4  
When Should You File Form CT-1 X? . . . . . . . . . . 4  
Is There a Deadline for Filing Form CT-1 X? . . . . . 5  
Where Should You File Form CT-1 X? . . . . . . . . . 5  
How Should You Complete Form CT-1 X? . . . . . . . 5  
Overview of the Process . . . . . . . . . . . . . . . . . . . 6  
Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 6  
Part 1: Select ONLY One Process . . . . . . . . . . . . 6  
Part 2: Complete the Certifications . . . . . . . . . . . . 7  
Reminders  
The COVID-19 related credit for qualified sick and  
family leave compensation is limited to leave taken  
after March 31, 2020, and before October 1, 2021.  
The credit for qualified sick and family leave  
compensation, as enacted under the Families First  
Coronavirus Response Act (FFCRA) and amended and  
extended by the COVID-related Tax Relief Act of 2020, is  
for leave taken after March 31, 2020, and before April 1,  
2021, and the credit for qualified sick and family leave  
compensation under sections 3131, 3132, and 3133 of  
the Internal Revenue Code, as enacted under the  
American Rescue Plan Act of 2021 (the ARP), is for leave  
taken after March 31, 2021, and before October 1, 2021.  
For more information about the credit for qualified sick and  
family leave compensation, go to IRS.gov/PLC.  
Corrections to amounts reported on Form CT-1, lines  
16, 23, 30, 31, 32, and 33, for the credit for qualified sick  
and family leave compensation for leave taken after March  
31, 2020, and before April 1, 2021, are reported on Form  
CT-1 X, lines 19, 24, 27, 28, 29, and 30, respectively.  
Corrections to amounts reported on Form CT-1, lines 17b,  
24b, 36, 37, 38, 39, 40, and 41, for the credit for qualified  
sick and family leave compensation for leave taken after  
March 31, 2021, and before October 1, 2021, are reported  
on Form CT-1 X, lines 20b, 25b, 33, 34, 35, 36, 37, and  
38, respectively.  
Part 3: Enter the Corrections for the Calendar  
Year You’re Correcting . . . . . . . . . . . . . . . . . . . 8  
Part 4: Explain Your Corrections for the  
Calendar Year You’re Correcting . . . . . . . . . . . 22  
Part 5: Sign Here . . . . . . . . . . . . . . . . . . . . . . . 22  
Worksheet 1. Adjusted Credit for Qualified Sick and  
Family Leave Compensation for Leave Taken  
After March 31, 2020, and Before April 1,  
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23  
Worksheet 2. Adjusted Employee Retention Credit  
for Qualified Compensation Paid After March  
12, 2020, and Before January 1, 2021, for a  
2020 Form CT-1 or Qualified Compensation  
Paid After December 31, 2020, and Before July  
1, 2021, for a 2021 Form CT-1 . . . . . . . . . . . . . . 24  
Worksheet 3. Adjusted Credit for Qualified Sick and  
Family Leave Compensation for Leave Taken  
After March 31, 2021, and Before October 1,  
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25  
The COVID-19 related employee retention credit has  
expired. The employee retention credit enacted under  
the Coronavirus Aid, Relief, and Economic Security  
(CARES) Act and amended and extended by the Taxpayer  
Certainty and Disaster Tax Relief Act of 2020 was limited  
to qualified compensation paid after March 12, 2020, and  
before July 1, 2021. The employee retention credit under  
section 3134 of the Internal Revenue Code, as enacted by  
the ARP and amended by the Infrastructure Investment  
and Jobs Act, was limited to qualified compensation paid  
after June 30, 2021, and before October 1, 2021, unless  
the employer was a recovery startup business. An  
employer that was a recovery startup business could also  
claim the employee retention credit for qualified  
Worksheet 4. Adjusted Employee Retention Credit  
for Qualified Compensation Paid After June 30,  
2021, and Before January 1, 2022 . . . . . . . . . . . 26  
Worksheet 5. Adjusted COBRA Premium  
Assistance Credit . . . . . . . . . . . . . . . . . . . . . . . 27  
How Can You Get Forms, Instructions, and  
Publications From the IRS? . . . . . . . . . . . . . . . . 28  
Future Developments  
For the latest information about developments related to  
Form CT-1 X and its instructions, such as legislation  
enacted after they were published, go to IRS.gov/CT1X.  
Before you proceed with these instructions and  
compensation paid after September 30, 2021, and before  
January 1, 2022. For more information about the  
completing Form CT-1 X, you'll need a copy of the  
Instructions for Form CT-1 because these  
TIP  
employee retention credit, including an eligibility checklist,  
frequently asked questions, information on identifying  
employee retention credit scam promotions, and  
instructions don't repeat all of the information included in  
the Instructions for Form CT-1. For example, these  
Feb 12, 2024  
Cat. No. 20339E  
   
directions on how to withdraw a previously filed claim for  
If you claimed the credit for qualified sick and  
family leave compensation for leave taken after  
March 31, 2020, and before April 1, 2021, and you  
the employee retention credit, go to IRS.gov/ERC.  
!
CAUTION  
Corrections to amounts reported on Form CT-1, lines  
17a (line 17 for calendar year 2020), 24a (line 24 for  
calendar year 2020), 34, and 35, for the employee  
retention credit are reported on Form CT-1 X, lines 20a,  
25a, 31, and 32, respectively. However, how you figure the  
employee retention credit for qualified compensation paid  
after March 12, 2020, and before July 1, 2021, is different  
from how you figure the credit for qualified compensation  
paid after June 30, 2021, and before January 1, 2022. For  
corrections to qualified compensation paid after June 30,  
2021, you may need to complete line 39 to tell us if you're  
eligible for the employee retention credit solely because  
your business is a recovery startup business. For  
corrections to qualified compensation paid after  
September 30, 2021, you may need to complete line 40 to  
tell us if you’re eligible for the employee retention credit  
solely because your business is a recovery startup  
business.  
Credit for COBRA premium assistance payments is  
limited to periods of coverage beginning on or after  
April 1, 2021, through periods of coverage beginning  
on or before September 30, 2021. Section 9501 of the  
ARP provides for COBRA premium assistance in the form  
of a full reduction in the premium otherwise payable by  
certain individuals and their families who elect COBRA  
continuation coverage due to a loss of coverage as the  
result of a reduction in hours or an involuntary termination  
of employment (assistance eligible individuals). This  
COBRA premium assistance was available for periods of  
coverage beginning on or after April 1, 2021, through  
periods of coverage beginning on or before September  
30, 2021. A premium payee was entitled to the COBRA  
premium assistance credit at the time an eligible individual  
elects coverage. Therefore, other than in rare  
make any corrections on Form CT-1 X to amounts used to  
figure this credit, you'll need to refigure the amount of this  
credit using Worksheet 1. You'll also use this worksheet to  
figure this credit if you’re claiming it for the first time on  
Form CT-1 X. If you claimed the credit for qualified sick  
and family leave compensation for leave taken after March  
31, 2021, and before October 1, 2021, and you make any  
corrections on Form CT-1 X to amounts used to figure this  
credit, you'll need to refigure the amount of this credit  
using Worksheet 3. You'll also use this worksheet to figure  
this credit if you’re claiming it for the first time on Form  
CT-1 X. If you claimed the employee retention credit for  
compensation paid after March 12, 2020, and before July  
1, 2021, and you make any corrections on Form CT-1 X to  
amounts used to figure this credit, you'll need to refigure  
the amount of this credit using Worksheet 2. You'll also  
use this worksheet to figure this credit if you’re claiming it  
for the first time on Form CT-1 X. If you claimed the  
employee retention credit for compensation paid after  
June 30, 2021, and before January 1, 2022, and you make  
any corrections on Form CT-1 X to amounts used to figure  
this credit, you'll need to refigure the amount of this credit  
using Worksheet 4. You'll also use this worksheet to figure  
this credit if you’re claiming it for the first time on Form  
CT-1 X. If you claimed the COBRA premium assistance  
credit and you make any corrections on Form CT-1 X to  
amounts used to figure this credit, you'll need to refigure  
the amount of this credit using Worksheet 5. You'll also  
use this worksheet to figure this credit if you’re claiming it  
for the first time on Form CT-1 X.  
If a line on Form CT-1 X doesn’t apply to you,  
leave it blank. If you’re correcting a year that  
TIP  
began before 2020, you must leave blank lines 19,  
circumstances, due to the COBRA notice and election  
period requirements (generally, employers have 60 days  
to provide notice and assistance eligible individuals have  
60 days to elect coverage), January 2022 was generally  
the end of the period in which an assistance eligible  
individual would have elected coverage. Under some rare  
circumstances, it may be possible for a premium payee to  
become entitled to the COBRA premium assistance credit  
after January 2022. In these rare instances, the credit was  
still claimed on Form CT-1 filed for 2022 and an  
20a, 22, 23, 24, 25a, 27, 28, 29, 30, 31, and 32. If you’re  
correcting a year before 2021, you must leave blank lines  
20b, 20c, 20d, 25b, 25c, 33, 34, 35, 36, 37, 38, 39, and  
40. If you're correcting a year after 2021, you must leave  
blank lines 20a, 25a, 31, 32, 39, and 40.  
Employee consents to support a claim for refund.  
Rev. Proc. 2017-28, 2017-14 I.R.B. 1061, available at  
guidance to employers on the requirements for employee  
consents used by an employer to support a claim for  
refund of overcollected Railroad Retirement Tax Act  
(RRTA) taxes. The revenue procedure clarifies the basic  
requirements for both a request for employee consent and  
for the employee consent, and permits a consent to be  
requested, furnished, and retained in an electronic format  
as an alternative to paper format. The revenue procedure  
also contains guidance concerning when an employer  
may claim a refund of only the employer share of  
overcollected RRTA taxes. The revenue procedure  
requires that any request for consent include an Additional  
Medicare Tax notice indicating that any claim on the  
employee’s behalf won’t include a claim for overpaid Tier 1  
Employee Additional Medicare Tax.  
adjustment, if needed, can be made on Form CT-1 X for  
2022. Employers eligible to claim the COBRA premium  
assistance credit after 2022 must file Form CT-1 X to  
claim the credit.  
For more information on COBRA premium assistance  
payments and the credit, see Notice 2021-31, 2021-23  
I.R.B. 1173, available at IRS.gov/irb/  
2021-23_IRB#NOT-2021-31; and Notice 2021-46,  
2021-33 I.R.B. 303, available at IRS.gov/irb/  
Corrections to amounts reported on Form CT-1, lines  
17c, 17d, and 24c, for the COBRA premium assistance  
credit are reported on Form CT-1 X, lines 20c, 20d, and  
25c, respectively.  
Correcting Tier 1 Employee Additional Medicare Tax  
withholding and compensation subject to Tier 1  
2
Instructions for Form CT-1 X (Rev. 3-2024)  
 
Employee Additional Medicare Tax withholding.  
Compensation (including tips) and sick pay subject to Tier  
1 Employee Additional Medicare Tax withholding are  
reported on Form CT-1, lines 6 and 12. Certain errors  
discovered on a previously filed Form CT-1 are corrected  
on Form CT-1 X, lines 11 and 17. However, you can’t file  
Form CT-1 X to correct Tier 1 Employee Additional  
Medicare Tax actually withheld from an employee in a  
prior year. See the instructions for lines 11 and 17, later,  
for more information on the types of errors that can be  
corrected and how the correction is reported on Form  
CT-1 X. For more information about Tier 1 Employee  
Additional Medicare Tax withholding, see the Instructions  
for Form CT-1 or go to IRS.gov/ADMTfaqs.  
find Rev. Rul. 2009-39, 2009-52 I.R.B. 951 at IRS.gov/irb/  
When you discover an error on a previously filed Form  
CT-1, you must:  
Correct that error using Form CT-1 X;  
File a separate Form CT-1 X for each Form CT-1 that  
you’re correcting; and  
Generally, file Form CT-1 X separately. Don’t file Form  
CT-1 X with Form CT-1. However, see the instructions for  
line 42, later, for an exception.  
If you didn’t file a Form CT-1 for 1 or more years, don’t  
use Form CT-1 X. Instead, file Form CT-1 for each of  
those years. Also, see When Should You File Form CT-1  
X, later. However, if you didn’t file Forms CT-1 because  
you improperly treated workers as independent  
General Instructions:  
contractors or nonemployees and are now reclassifying  
them as employees, see the instructions for line 42, later.  
Understanding Form CT-1 X  
What Is the Purpose of Form CT-1 X?  
Unless otherwise specified in these instructions,  
an underreported employment tax credit or Tier 1  
tax deferral should be treated like an overreported  
TIP  
Use Form CT-1 X to correct errors on a previously filed  
Form CT-1. Use Form CT-1 X to correct:  
tax amount. An overreported employment tax credit or Tier  
1 tax deferral should be treated like an underreported tax  
amount. For more information, including which process to  
select on lines 1 and 2, see Correcting an employment tax  
Tier 1 Employee tax, Tier 1 Employee Medicare tax,  
Tier 1 Employee Additional Medicare Tax, and Tier 2  
Employee tax;  
Tier 1 Employer tax, Tier 1 Employer Medicare tax, and  
Tier 2 Employer tax;  
Deferred amount of the Tier 1 Employer tax;  
Deferred amount of the Tier 1 Employee tax;  
Amounts reported on Form CT-1 for the credit for  
Report the correction of underreported and  
overreported tax amounts for the same tax period on a  
single Form CT-1 X, unless you’re requesting a refund or  
abatement. If you’re requesting a refund or abatement and  
are correcting both underreported and overreported tax  
amounts, file one Form CT-1 X correcting the  
qualified sick and family leave compensation for leave  
taken after March 31, 2020, and before April 1, 2021,  
including adjustments to Form CT-1, lines 16, 23, 30, 31,  
32, and 33;  
underreported tax amounts only and a second Form CT-1  
X correcting the overreported tax amounts.  
Amounts reported on Form CT-1 for the credit for  
qualified sick and family leave compensation for leave  
taken after March 31, 2021, and before October 1, 2021,  
including adjustments to Form CT-1, lines 17b, 24b, 36,  
37, 38, 39, 40, and 41;  
You’ll use the adjustment process if you underreported  
RRTA taxes and are making a payment, or if you  
overreported RRTA taxes and will be applying the credit to  
Form CT-1 for the period during which you file Form CT-1  
X. However, see the Caution under Is There a Deadline for  
Filing Form CT-1 X, later, if you’re correcting overreported  
tax amounts during the last 90 days of a period of  
limitations. You’ll use the claim process if you overreported  
RRTA taxes and are requesting a refund or abatement of  
the overreported tax amount. Follow the chart on page 6  
of Form CT-1 X for help in choosing whether to use the  
adjustment process or the claim process. Be sure to  
provide a detailed explanation on line 43 for each  
correction that you show on Form CT-1 X.  
Amounts reported on Form CT-1 for the employee  
retention credit, including adjustments to Form CT-1, lines  
17 (2020) or 17a (2021), 24 (2020) or 24a (2021), 34, 35,  
42, and 43; and  
Amounts reported on Form CT-1 for the COBRA  
premium assistance credit, for periods of coverage  
beginning on or after April 1, 2021, through periods of  
coverage beginning on or before September 30, 2021,  
including adjustments to Form CT-1, lines 17c, 17d, and  
24c.  
Use Form 843, Claim for Refund and Request for  
Abatement, to request a refund or abatement of assessed  
interest or penalties. Don’t request a refund or abatement  
of assessed interest or penalties on Form CT-1 or Form  
CT-1 X.  
Continue to report current year adjustments on Form  
CT-1, line 14.  
You have additional requirements to complete when  
filing Form CT-1 X, such as certifying that you filed (or will  
file) all applicable Forms W-2, Wage and Tax Statements,  
and Forms W-2c, Corrected Wage and Tax Statements,  
with the Social Security Administration (SSA). For  
We use the terms “correct” and “corrections” on  
Form CT-1 X and in these instructions to include  
interest-free adjustments under sections 6205 and  
TIP  
6413 and claims for refund and abatement under sections  
6402, 6414, and 6404. See Rev. Rul. 2009-39 for  
corrections of overreported Tier 1 and Tier 2 taxes, you  
must make any certifications that apply to your situation.  
examples of how the interest-free adjustment and claim  
for refund rules apply in 10 different situations. You can  
Be sure to give us a detailed explanation on line 43 for  
each correction you show on Form CT-1 X.  
Instructions for Form CT-1 X (Rev. 3-2024)  
3
   
Don’t use Form CT-1 X to correct Form 941,  
941-SS, 943, 944, or 945. Instead, use the "X"  
form that corresponds to those forms (Form  
About Penalties and Interest, later. For details on how to  
make a payment, see the instructions for line 26, later.  
!
CAUTION  
If Form CT-1 X is filed late (after the due date of the  
return for the return period in which you discovered the  
error), you must attach an amended Form 945-A to Form  
CT-1 X. Otherwise, the IRS may assess an “averaged”  
FTD penalty. See “Averaged” FTD penalty in section 11 of  
Pub. 15 for more information about “averaged” FTD  
penalties. The total tax reported on Form 945-A, line M,  
must match the corrected total tax (Form CT-1, line 19  
(line 15 for years before 2020), combined with any  
correction reported on Form CT-1 X, line 21) for the year,  
less any previous abatements and interest-free tax  
assessments.  
Example—You owe tax. On March 8, 2024, you  
discovered that you underreported $1,000 of RRTA  
compensation on your 2023 Form CT-1. File Form CT-1 X  
and pay the amount you owe by February 28, 2025,  
because you discovered the error in 2024, and February  
28, 2025, is the due date for that year. If you file Form  
CT-1 X before February 28, 2025, pay the amount you  
owe by the time you file.  
941-X, 943-X, 944-X, or 945-X).  
Where Can You Get Help?  
For help filing Form CT-1 X or for questions about RRTA  
taxes and tax corrections, you can:  
See Pub. 15, Employer's Tax Guide; or  
Call the IRS Business and Specialty Tax Line toll free at  
800-829-4933 or 800-829-4059 (TDD/TTY for persons  
who are deaf, hard of hearing, or have a speech  
disability), Monday–Friday from 7:00 a.m. to 7:00 p.m.  
local time (Alaska and Hawaii follow Pacific time).  
When Should You File Form CT-1 X?  
File Form CT-1 X when you discover an error on a  
previously filed Form CT-1.  
Form CT-1 X can’t be used to correct  
underreported amounts of Tier 1 Employee  
!
However, if your only errors on Form CT-1 relate to  
RRTA tax liabilities reported in Part II of Form CT-1 or on  
Form 945-A, Annual Record of Federal Tax Liability, don’t  
file Form CT-1 X. To correct federal tax liabilities reported  
in Part II of Form CT-1, file Form 945-A, but only enter the  
monthly totals. The daily entries aren’t required. For more  
information about correcting RRTA tax liabilities reported  
on Form 945-A, see the Form 945-A instructions.  
Due dates. The due date for filing Form CT-1 X depends  
on when you discover an error and if you underreported or  
overreported tax. If you underreported tax, see  
Underreported tax, later. For overreported tax amounts,  
you may choose to either make an interest-free  
adjustment or file a claim for refund or abatement. If you’re  
correcting overreported tax amounts, see Overreported  
process, later.  
If any due date falls on a Saturday, Sunday, or legal  
holiday, you may file Form CT-1 X on the next business  
day. The term “legal holiday” means any legal holiday in  
the District of Columbia. See Pub. 15 for the list of legal  
holidays. If we receive Form CT-1 X after the due date, we  
will treat Form CT-1 X as filed on time if the envelope  
containing Form CT-1 X is properly addressed, contains  
sufficient postage, and is postmarked by the U.S. Postal  
Service on or before the due date, or sent by an  
CAUTION  
Additional Medicare Tax unless the amounts were  
withheld from employee compensation.  
Overreported tax—Adjustment process. If you  
overreported tax and choose to apply the credit to Form  
CT-1, file an adjusted return on Form CT-1 X as soon as  
possible after you discover the error but more than 90  
days before the period of limitations on the credit or refund  
for Form CT-1 expires. See Is There a Deadline for Filing  
Form CT-1 X, later.  
Form CT-1 X can’t be used to correct overreported  
amounts of Tier 1 Employee Additional Medicare  
!
CAUTION  
Tax unless the amounts weren’t withheld from  
employee compensation.  
Example—You want your credit applied to Form  
CT-1. You filed your 2023 Form CT-1 on February 23,  
2024, and payments were timely made. On May 3, 2024,  
you discover that you overreported tax on your 2023 Form  
CT-1. You file Form CT-1 X on June 3, 2024, and check  
the box on line 1 to indicate you want to use the  
adjustment process. The IRS treats your credit as a tax  
deposit made on January 1, 2024. When you file your  
2024 Form CT-1, include the amount from Form CT-1 X,  
line 26, on the “Total railroad retirement tax deposits” line  
of your 2024 Form CT-1.  
Overreported tax—Claim process. If you overreported  
tax on Form CT-1, you may choose to file a claim for  
refund or abatement on Form CT-1 X any time before the  
period of limitations on credit or refund expires on Form  
CT-1. If you also need to correct any underreported tax  
amounts, you must file another Form CT-1 X reporting  
only corrections to the underreported tax amounts. See Is  
IRS-designated private delivery service (PDS) on or  
before the due date. If you don’t follow these guidelines,  
we will consider Form CT-1 X filed when it is actually  
received. For more information about PDSs, see Where  
Underreported tax. If you’re correcting underreported  
tax, you must file Form CT-1 X by the due date of the  
return for the return period in which you discovered the  
error and pay the amount you owe by the time you file.  
Filing and paying on time generally will ensure that your  
correction is interest free and not subject to failure-to-pay  
(FTP) or failure-to-deposit (FTD) penalties. See What  
You may not file a refund claim to correct Tier 1  
Employee Additional Medicare Tax actually  
!
CAUTION  
withheld from employees.  
4
Instructions for Form CT-1 X (Rev. 3-2024)  
         
correct the 2022 Form CT-1. File a second Form CT-1 X to  
correct the 2023 Form CT-1.  
Is There a Deadline for Filing Form  
CT-1 X?  
Employer Identification Number (EIN), RRB  
Number, Name, and Address  
Generally, you may correct overreported taxes on a  
previously filed Form CT-1 if you file Form CT-1 X within 3  
years of the date Form CT-1 was filed or 2 years from the  
date you paid the tax reported on Form CT-1, whichever is  
later. You may correct underreported taxes on a previously  
filed Form CT-1 if you file Form CT-1 X within 3 years of  
the date the Form CT-1 was filed. We call each of these  
time frames a “period of limitations.” For purposes of the  
period of limitations, Form CT-1 is considered filed on the  
last day in February of the succeeding year if filed before  
that date.  
Example. You filed your 2021 Form CT-1 on January  
28, 2022, and payments were timely made. The IRS treats  
the return as if it were filed on February 28, 2022. On  
January 15, 2025, you discover that you overreported  
RRTA compensation on that form by $10,000. To correct  
the error, you must file Form CT-1 X by February 28, 2025,  
which is the end of the period of limitations, and use the  
claim process.  
Enter your EIN, RRB number, name, and address in the  
spaces provided. Also enter your name and EIN on the  
top of pages 2, 3, 4, and 5, and on any attachments. If  
your address has changed since you filed your Form  
CT-1, enter the corrected information and the IRS will  
update your address of record. Be sure to write your  
name, EIN, “Form CT-1 X,and the calendar year you’re  
correcting on the top of any attachments.  
Return You’re Correcting  
Enter the calendar year of the Form CT-1 you’re correcting  
in the box at the top of page 1. Enter the same calendar  
year on pages 2, 3, 4, and 5.  
Enter the Date You Discovered Errors  
You must enter the date you discovered errors. You  
discover an error when you have enough information to be  
able to correct it. If you’re reporting several errors that you  
discovered at different times, enter the earliest date you  
discovered an error here. Report any subsequent dates  
and related errors on line 43.  
If you file Form CT-1 X to correct overreported tax  
amounts in the last 90 days of a period of  
!
CAUTION  
limitations, you must use the claim process. You  
can’t use the adjustment process. If you are also  
correcting underreported tax amounts, you must file  
another Form CT-1 X to correct the underreported tax  
amounts using the adjustment process and pay any tax  
due.  
Must You Make an Entry on Each Line?  
You must provide all of the information requested at the  
top of page 1 of Form CT-1 X. You must check one box  
(but not both) in Part 1. In Part 2, you must check the box  
on line 3 and any applicable boxes on lines 4 and 5. In  
Part 3, if any line doesn’t apply, leave it blank. Complete  
Parts 4 and 5 as instructed.  
Where Should You File Form CT-1 X?  
Send your completed Form CT-1 X to:  
How Should You Report Negative Amounts?  
Form CT-1 X uses negative numbers to show reductions  
in tax (credits) and positive numbers to show additional  
tax (amounts you owe).  
Department of the Treasury  
Internal Revenue Service Center  
Cincinnati, OH 45999-0007  
When reporting a negative amount in columns 3 and 4,  
use a minus sign instead of parentheses. For example,  
enter “-10.59” instead of “(10.59).However, if you’re  
completing the return on your computer and your software  
only allows you to use parentheses to report negative  
amounts, you may use them.  
PDSs can’t deliver to P.O. boxes. You must use the U.S.  
Postal Service (USPS) to mail an item to a P.O. box  
address. Go to IRS.gov/PDS for the current list of PDSs. If  
you file Form CT-1 X using a PDS, send it to the following  
address.  
Ogden-Internal Revenue Submission Processing  
Center  
How Should You Make Entries on Form CT-1 X?  
You can help the IRS process Form CT-1 X timely and  
accurately if you follow these guidelines.  
1973 Rulon White Blvd.  
Ogden, UT 84201  
Type or print your entries.  
Use Courier font (if possible) for all typed or  
Use this address even though Form CT-1 X mailed by the  
USPS goes to Cincinnati.  
computer-generated entries.  
Omit dollar signs. You may use commas and decimal  
How Should You Complete Form CT-1  
X?  
Use a Separate Form CT-1 X for Each Year You’re  
Correcting  
Use a separate Form CT-1 X for each Form CT-1 that  
you’re correcting. For example, if you found errors on your  
Forms CT-1 for 2022 and 2023, file one Form CT-1 X to  
points, if desired. Enter dollar amounts to the left of any  
preprinted decimal point and cents to the right of it.  
Always show an amount for cents, even if it is zero.  
Don’t round entries to whole dollars.  
Complete all five pages and sign Form CT-1 X on  
page 5.  
Staple multiple sheets in the upper-left corner.  
Instructions for Form CT-1 X (Rev. 3-2024)  
5
       
ensure that the IRS will have enough time to process the  
Form CT-1 X so that the credit will be posted before you  
file Form CT-1, thus avoiding an erroneous balance due  
notice from the IRS. See the example next.  
What About Penalties and Interest?  
Generally, your correction of an underreported tax amount  
won’t be subject to an FTP penalty, an FTD penalty, or  
interest if you:  
File on time (by the due date of the year in which you  
Example—You want your overreported tax applied  
as a credit on Form CT-1. On December 19, 2024, you  
discover you overreported your tax on your 2023 Form  
CT-1 and want to choose the adjustment process. To  
allow the IRS enough time to process the credit, you file  
Form CT-1 X on March 10, 2025, and take the credit on  
your 2025 Form CT-1.  
discover the error),  
Pay the amount shown on line 26 by the time you file  
Form CT-1 X,  
Enter the date you discovered the error, and  
Explain in detail the grounds and facts relied on to  
support the correction.  
No correction will be eligible for interest-free treatment  
if any of the following apply.  
Specific Instructions  
Part 1: Select ONLY One Process  
Because Form CT-1 X may be used to file either an  
adjusted railroad retirement tax return or a claim for refund  
or abatement, you must check one box on either line 1 or  
line 2. Don’t check both boxes.  
The underreported amounts relate to an issue that was  
raised in an examination of a prior period.  
You knowingly underreported your employment tax  
liability.  
You received a notice and demand for payment.  
You received a notice of determination under section  
7436.  
If you receive a notice about a penalty after you file this  
Correcting an employment tax credit or Tier 1 tax de-  
ferral. For boxes 1 and 2, if you underreported an  
employment tax credit or Tier 1 tax deferral, treat it like you  
overreported a tax amount. If you overreported an  
employment tax credit or Tier 1 tax deferral, treat it like you  
underreported a tax amount. If you're filing Form CT-1 X to  
adjust only an employment tax credit and/or Tier 1 tax  
deferral and you're not correcting any overreported taxes  
on Form CT-1 X, lines 6–17, skip lines 4 and 5.  
return, reply to the notice with an explanation and we will  
determine if you meet reasonable-cause criteria. Don’t  
attach an explanation when you file your return.  
Overview of the Process  
To correct a previously filed Form CT-1, use Form CT-1 X  
to file either an adjusted railroad retirement tax return or a  
claim for refund or abatement. The adjustment process  
and the claim process are outlined below.  
If you underreported the tax. If you underreported  
the tax on a previously filed Form CT-1, check the box on  
line 1 and pay any additional amount you owe by the  
time you file Form CT-1 X. For details on how to make a  
payment, see the instructions for line 26, later.  
1. Adjusted Railroad Retirement Tax Return  
Check the box on line 1 if you’re correcting underreported  
tax amounts or overreported tax amounts and you would  
like to use the adjustment process to correct the errors.  
If you’re correcting both underreported tax amounts  
and overreported tax amounts on this form, you must  
check this box. If you check this box, any negative amount  
shown on line 26 will be applied as a credit (tax deposit) to  
your Form CT-1 for the year in which you’re filing this form.  
Example—You underreported RRTA taxes. On June  
21, 2024, you discovered an error that results in additional  
tax on your 2023 Form CT-1. File Form CT-1 X by  
February 28, 2025, and pay the amount you owe by the  
time you file. See When Should You File Form CT-1 X,  
earlier. Don’t attach Form CT-1 X to your 2024 Form CT-1.  
If you overreported the tax. If you overreported the  
tax on a previously filed Form CT-1, choose one of the  
following options.  
Form CT-1 X can’t be used to correct overreported  
amounts of Tier 1 Employee Additional Medicare  
!
CAUTION  
Tax unless the amounts weren’t withheld from  
Use the adjustment process. Check the box on line 1 to  
employee compensation.  
apply any credit (negative amount) from line 26 to Form  
CT-1 for the year during which you file Form CT-1 X.  
If you owe tax. Pay the amount shown on line 26 by the  
time you file Form CT-1 X. Generally, you won’t be  
charged interest if you file on time, pay on time, enter the  
date you discovered the error, and explain the correction  
on line 43.  
If you have a credit. You overreported RRTA taxes (you  
have a negative amount on line 26) and want the IRS to  
apply the credit to Form CT-1 for the period during which  
you filed Form CT-1 X. The IRS will apply your credit on  
the first day of the Form CT-1 year during which you filed  
Form CT-1 X. However, the credit you show on Form CT-1  
X, line 26, may not be fully available on your Form CT-1 if  
the IRS corrects it during processing or you owe other  
taxes, penalties, or interest. The IRS will notify you if your  
claimed credit changes or if the amount available as a  
Use the claim process. Check the box on line 2 to file a  
claim on Form CT-1 X requesting a refund or abatement of  
the amount shown on line 26.  
To ensure that the IRS has enough time to  
process a credit for an overreporting tax  
TIP  
adjustment in the year during which you file Form  
CT-1 X, you’re encouraged to file Form CT-1 X correcting  
the overreported tax amount in the first 11 months of a  
year. For example, if you discover an overreported tax  
amount in December, you may want to file Form CT-1 X in  
the first 11 months of the next year. However, there must  
be 90 days remaining on the period of limitations when  
you file Form CT-1 X. See the Caution under Is There a  
Deadline for Filing Form CT-1 X, earlier. This should  
6
Instructions for Form CT-1 X (Rev. 3-2024)  
           
credit on Form CT-1 was reduced because of unpaid  
taxes, penalties, or interest.  
showing your employees' correct wage and tax amounts.  
See the General Instructions for Forms W-2 and W-3 for  
detailed information about filing requirements.  
Don’t check the box on line 1 if you’re correcting  
overreported tax amounts and the period of  
You must check the box on line 3 to certify that you filed  
Forms W-2 or Forms W-2c even if your corrections on  
Form CT-1 X don’t change amounts shown on those  
forms. For example, if your only correction to Form CT-1  
involves misstated tax adjustments, which don’t change  
the amounts reported on your employee’s Form W-2 (see  
the instructions for line 18, later), check the box on line 3  
to certify that you already filed all required Forms W-2 and  
W-2c with the SSA. In this situation, you’re certifying that  
you don’t need to file Form W-2c because you already  
filed a correct Form W-2.  
!
CAUTION  
limitations on credit or refund for Form CT-1 will  
expire within 90 days of the date you file Form CT-1 X.  
Instead, check the box on line 2. See Is There a Deadline  
2. Claim  
Check the box on line 2 to use the claim process if you’re  
correcting overreported tax amounts only and you’re  
claiming a refund or abatement for the negative amount  
(credit) shown on line 26. Don’t check this box if you’re  
correcting any underreported tax amounts on this form.  
4. Certifying Overreporting Adjustments  
You must check the box on line 2 if you have a credit (a  
negative amount on line 26) and the period of limitations  
on credit or refund for Form CT-1 will expire within 90 days  
of the date you file Form CT-1 X. See Is There a Deadline  
The IRS usually processes claims shortly after they are  
filed. The IRS will notify you if your claim is denied,  
accepted as filed, or selected to be examined. See Pub.  
556, Examination of Returns, Appeal Rights, and Claims  
for Refund, for more information.  
If you overreported RRTA tax and/or Tier 1 Employee  
Additional Medicare Tax and checked the box on line 1,  
check the appropriate box on line 4. You may need to  
check more than one box. If you obtained written  
statements from some employees but you couldn’t locate  
employees or secure the statements of the remaining  
employees, check all applicable boxes. Provide a  
summary on line 43 of the amount of the corrections for  
both the employees who provided written statements and  
for those who didn’t.  
Unless the IRS corrects Form CT-1 X during  
processing or you owe other taxes, penalties, or interest,  
the IRS will refund the amount shown on line 26, plus any  
interest that applies.  
You may not use Form CT-1 X to correct  
overreported amounts of Tier 1 Employee  
!
CAUTION  
Additional Medicare Tax unless the amounts  
weren’t withheld from employee compensation.  
You may not file a refund claim to correct Tier 1  
4a. Check the box on line 4a if your overreported amount  
includes each affected employee share of overcollected  
Employee RRTA taxes. You’re certifying that you repaid or  
reimbursed the prior year Employee RRTA taxes and you  
received written statements from the employees stating  
that they didn’t and won’t receive a refund or credit for the  
prior year taxes. Don’t send these statements to the IRS.  
Keep them for your records. Generally, all employment tax  
records must be kept for at least 4 years. Records related  
to qualified sick leave compensation and qualified family  
leave compensation for leave taken after March 31, 2021,  
and before October 1, 2021, and records related to  
Employee Additional Medicare Tax actually  
!
CAUTION  
withheld from employees.  
Part 2: Complete the Certifications  
You must complete all certifications that apply by checking  
the appropriate boxes. If all of your corrections relate to  
underreported tax amounts, complete line 3 only; skip  
lines 4 and 5 and go to Part 3.  
If your corrections relate to overreported tax amounts,  
other than corrections related to underreported  
employment tax credits and Tier 1 tax deferrals, you have  
a duty to ensure that your employees' rights to recover  
overpaid Employee RRTA taxes that you withheld are  
protected. The certifications on lines 4 and 5 address the  
requirement to:  
qualified compensation for the employee retention credit  
paid after June 30, 2021, should be kept for at least 6  
years. Copies must be submitted to the IRS if requested.  
4b. Check the box on line 4b to certify that your  
overreported amount is only for Employer RRTA taxes on  
those employees whom you were unable to find or those  
who didn’t give you a statement described on line 4a.  
Repay or reimburse your employees for the  
overcollection of Employee RRTA taxes, or  
Obtain consents from your employees to file a claim on  
their behalf. See Rev. Proc. 2017-28 for guidance on the  
requirements for both a request for employee consent and  
for the employee consent.  
4c. Check the box on line 4c to certify that your  
overreported amount is only for RRTA taxes and/or Tier 1  
Employee Additional Medicare Tax that you didn’t withhold  
from your employees.  
For purposes of these certifications, Employee RRTA  
taxes consist of Tier 1 Employee tax, Tier 1 Employee  
Medicare tax, and Tier 2 Employee tax. Employer RRTA  
taxes consist of Tier 1 Employer tax, Tier 1 Employer  
Medicare tax, and Tier 2 Employer tax.  
5. Certifying Claims  
If you’re filing a claim for refund or abatement of  
overreported RRTA tax and/or Tier 1 Employee Additional  
Medicare Tax and checked the box on line 2, check the  
appropriate box on line 5. You may need to check more  
than one box. If you obtained written statements or  
consents from some employees but you couldn’t locate  
3. Filing Forms W-2 or Forms W-2c  
Check the box on line 3 to certify that you filed or will file  
Forms W-2 or Forms W-2c with the SSA, as required,  
Instructions for Form CT-1 X (Rev. 3-2024)  
7
 
employees or secure the statements of the remaining  
employees, check all applicable boxes. Provide a  
summary on line 43 of the amount of the corrections for  
the employees who provided statements or consents and  
those who didn’t.  
leave compensation for leave taken after March 31, 2021,  
and before October 1, 2021, and records related to  
qualified compensation for the employee retention credit  
paid after June 30, 2021, should be kept for at least 6  
years. Copies must be submitted to the IRS if requested.  
In certain situations, you may not have repaid or  
reimbursed your employees or obtained their consents  
prior to filing a claim, such as in cases where the period of  
limitations on credit or refund is about to expire. In those  
situations, file Form CT-1 X but don’t check a box on  
line 5. Tell us on line 43 that you haven’t repaid or  
reimbursed employees or obtained consents at the time  
you file the claim. However, you must repay or reimburse  
your employees and certify that you have done so before  
the IRS can allow the claim.  
5c. Check the box on line 5c to certify that your  
overreported tax is only for the Employer RRTA taxes. This  
applies when affected employees didn’t give you consent  
to file a claim for refund for the Employee RRTA taxes,  
they couldn’t be found, or they didn’t give you a statement  
described on line 5b.  
5d. Check the box on line 5d to certify that your  
overreported amount is only for RRTA taxes and/or Tier 1  
Employee Additional Medicare Tax that you didn’t withhold  
from your employees.  
You may not file a refund claim to correct Tier 1  
Employee Additional Medicare Tax actually  
!
CAUTION  
withheld from employees. If you request their  
consent to file a claim for employee RRTA taxes you must  
tell your employees that you can’t claim a refund of any  
Tier 1 Employee Additional Medicare Tax on their behalf.  
See Rev. Proc. 2017-28 for sample language to use in  
your request.  
5a. Check the box on line 5a if your overreported tax  
includes overcollected Employee RRTA taxes for each  
affected employee. You’re certifying that you repaid or  
reimbursed to the employees their share of the prior year  
Employee RRTA taxes and you received written  
statements from those employees stating that they didn’t  
and won’t receive a refund or credit for the prior year  
taxes. Don’t send these statements to the IRS. Keep them  
for you records. Generally, all employment tax records  
must be kept for at least 4 years. Records related to  
qualified sick leave compensation and qualified family  
leave compensation for leave taken after March 31, 2021,  
and before October 1, 2021, and records related to  
qualified compensation for the employee retention credit  
paid after June 30, 2021, should be kept for at least 6  
years. Copies must be submitted to the IRS if requested.  
Part 3: Enter the Corrections for the  
Calendar Year You’re Correcting  
What Amounts Should You Report in Part 3?  
On lines 6–17, columns 1 and 2, show amounts for all of  
your employees, not just for those employees whose  
amounts you’re correcting.  
If a correction that you report in column 4 includes both  
underreported and overreported amounts (see the  
instructions for line 41, later), provide details for each error  
on line 43.  
5b. Check the box on line 5b if your overreported tax  
includes overcollected prior year Employee RRTA taxes  
for each affected employee and you haven’t yet repaid or  
reimbursed the Employee RRTA taxes. You’re certifying  
that you received consent from each affected employee to  
file a claim on the employee share of those taxes and you  
received written statements from those employees stating  
that they didn’t and won’t receive a refund or credit for the  
prior year taxes.  
Because special circumstances apply for lines 18–20d,  
22–25c, and 27–40, read the instructions for each line  
carefully before entering amounts in the columns.  
An employee consent must:  
Contain the name, address, and social security number  
(or truncated taxpayer identification number, when  
appropriate) of the employee;  
If any line doesn’t apply to you, leave it blank.  
Contain the name, address, and EIN of the employer;  
Contain the tax period(s), the type of tax, and the  
If you previously adjusted or amended Form CT-1  
using Form CT-1 X, or because of an IRS  
!
amount of tax for which the consent is provided;  
CAUTION  
examination change, show amounts in column 2  
Affirmatively state that the employee authorizes the  
that include those previously reported corrections.  
employer to claim a refund for the overpayment of the  
employee share of tax;  
6. Tier 1 Employer Tax—Compensation  
Include the employee's written statement certifying that  
the employee hasn't made any previous claims (or the  
claims were rejected) and won't make any future claims for  
refund or credit of the amount of the overcollection;  
For purposes of these instructions, all references  
to “sick pay” mean ordinary sick pay, not “qualified  
sick leave compensation.”  
TIP  
Identify the basis of the claim; and  
If you’re correcting the compensation (other than tips  
and sick pay) for the Tier 1 Employer tax you reported on  
Form CT-1, line 1, enter the total corrected amount for all  
employees in column 1. In column 2, enter the amount you  
originally reported or as previously corrected. In column 3,  
enter the difference between columns 1 and 2. If you (or  
the IRS) previously corrected the amount reported on  
Form CT-1, line 1, enter in column 2 the amount after any  
previous corrections.  
Be dated and contain the employee's signature under  
penalties of perjury. The penalties of perjury statement  
should be located immediately above the required  
signature.  
Don’t send these statements and consents to the IRS.  
Keep them for your records. Generally, all employment tax  
records must be kept for at least 4 years. Records related  
to qualified sick leave compensation and qualified family  
8
Instructions for Form CT-1 X (Rev. 3-2024)  
 
line 6 (column 1)  
- line 6 (column 2)  
line 6 (column 3)  
line 7 (column 3)  
0.0145  
line 7 (column 4)  
x
If the amount in column 2 is larger than  
the amount in column 1, use a minus  
sign in column 3.  
If the amount in column 3 used a minus sign,  
also use a minus sign in column 4.  
Example—Tier 1 Employer Medicare  
compensation decreased. Following Example—Tier 1  
Employer compensation decreased in the instructions for  
line 6, the compensation that you counted twice was also  
Tier 1 Employer Medicare compensation. To correct the  
error, figure the difference on Form CT-1 X as shown.  
Multiply the amount in column 3 by 0.062 (6.2% tax  
rate) and enter the result in column 4.  
line 6 (column 3)  
x
0.062  
line 6 (column 4)  
If the amount in column 3 used a minus sign,  
also use a minus sign in column 4.  
Column 1 (corrected amount)  
Column 2 (Form CT-1, line 2)  
7,000.00  
- 9,000.00  
Column 3 (difference)  
-2,000.00  
Example—Tier 1 Employer compensation  
decreased. You reported $9,000 as Tier 1 Employer  
compensation in computing the tax on line 1 of your 2023  
Form CT-1. In December 2024, you discovered that you  
included $2,000 in compensation for one of your  
employees twice. To correct the error, figure the difference  
on Form CT-1 X as shown.  
Use the difference in column 3 to determine your tax  
correction.  
Column 3 (difference)  
Tax rate (1.45%)  
-2,000.00  
x 0.0145  
Column 4 (tax correction)  
-29.00  
Column 1 (corrected amount)  
Column 2 (Form CT-1, line 1)  
7,000.00  
- 9,000.00  
Be sure to explain the reasons for this correction on  
line 43.  
Column 3 (difference)  
-2,000.00  
8. Tier 2 Employer Tax—Compensation  
Use the difference in column 3 to determine your tax  
correction.  
If you’re correcting the compensation (other than tips) for  
the Tier 2 Employer tax you reported on Form CT-1, line 3,  
enter the total corrected amount in column 1. In column 2,  
enter the amount you originally reported or as previously  
corrected. In column 3, enter the difference between  
columns 1 and 2.  
Column 3 (difference)  
Tax rate (6.2%)  
-2,000.00  
x 0.062  
Column 4 (tax correction)  
-124.00  
line 8 (column 1)  
- line 8 (column 2)  
line 8 (column 3)  
Be sure to explain the reasons for this correction on  
line 43.  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
7. Tier 1 Employer Medicare  
Tax—Compensation  
If you’re correcting the compensation (other than tips and  
sick pay) for the Tier 1 Employer Medicare tax you  
reported on Form CT-1, line 2, enter the total corrected  
amount in column 1. In column 2, enter the amount you  
originally reported or as previously corrected. In column 3,  
enter the difference between columns 1 and 2.  
Multiply the amount in column 3 by the rate stated on  
line 3 of the Form CT-1 for the year that you’re  
correcting and enter the result in column 4. If the amount  
in column 3 used a minus sign, also use a minus sign in  
column 4.  
line 7 (column 1)  
- line 7 (column 2)  
line 7 (column 3)  
Example—Tier 2 Employer compensation  
decreased. Following Example—Tier 1 Employer  
compensation decreased in the instructions for line 6, the  
compensation that you counted twice was also Tier 2  
Employer compensation. Because you’re correcting your  
2023 Form CT-1 in this example, use the rate from line 3  
(13.1%) shown on that return. To correct the error, figure  
the difference on Form CT-1 X as shown.  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
Multiply the amount in column 3 by 0.0145 (1.45% tax  
rate) and enter the result in column 4.  
Instructions for Form CT-1 X (Rev. 3-2024)  
9
 
Multiply the amount in column 3 by 0.0145 (1.45% tax  
rate) and enter the result in column 4.  
Column 1 (corrected amount)  
Column 2 (Form CT-1, line 3)  
7,000.00  
- 9,000.00  
Column 3 (difference)  
-2,000.00  
line 10 (column 3)  
x 0.0145  
line 10 (column 4)  
If the amount in column 3 used a minus sign,  
also use a minus sign in column 4.  
Use the difference in column 3 to determine your tax  
correction.  
Column 3 (difference)  
Tax rate (13.1%)  
Column 4 (tax correction)  
-2,000.00  
x 0.131  
-262.00  
Be sure to explain the reasons for this correction on  
line 43.  
11. Tier 1 Employee Additional Medicare  
Tax—Compensation (Other Than Sick Pay)  
Be sure to explain the reasons for this correction on  
line 43.  
You may use Form CT-1 X to correct errors to Tier 1  
Employee Additional Medicare Tax withholding for prior  
years if the amount reported on Form CT-1, line 6, isn’t the  
amount you actually withheld. This type of error is an  
administrative error. The administrative error adjustment  
corrects the amount reported on Form CT-1 to agree with  
the amount actually withheld from employees.  
9. Tier 1 Employee Tax—Compensation  
If you’re correcting the compensation, including tips  
reported, but excluding sick pay, for the Tier 1 Employee  
tax you reported on Form CT-1, line 4, enter the total  
corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected.  
In column 3, enter the difference between columns 1 and  
2.  
If a prior year error was a nonadministrative error, you  
may correct only the compensation subject to Tier 1  
Employee Additional Medicare Tax withholding that was  
originally reported on Form CT-1, line 6, or previously  
corrected on Form CT-1 X. You can’t correct the tax  
reported on Form CT-1, line 6.  
Prior year administrative error. If you’re correcting the  
compensation subject to Tier 1 Employee Additional  
Medicare Tax withholding that you reported on Form CT-1,  
line 6, enter the total corrected amount in column 1. In  
column 2, enter the amount you originally reported or as  
previously corrected. In column 3, enter the difference  
between columns 1 and 2.  
line 9 (column 1)  
- line 9 (column 2)  
line 9 (column 3)  
If the amount in column 2 is larger than  
the amount in column 1, use a minus  
sign in column 3.  
Multiply the amount in column 3 by 0.062 (6.2% tax  
rate) and report the result in column 4.  
line 9 (column 3)  
x 0.062  
line 9 (column 4)  
line 11 (column 1)  
- line 11 (column 2)  
line 11 (column 3)  
If the amount in column 3 used a minus sign,  
also use a minus sign in column 4.  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
Be sure to explain the reasons for this correction on  
line 43.  
Multiply the amount in column 3 by 0.009 (0.9% tax  
rate) and enter the result in column 4.  
10. Tier 1 Employee Medicare  
Tax—Compensation  
line 11 (column 3)  
x 0.009  
If you’re correcting the compensation, including tips  
reported, but excluding sick pay, for the Tier 1 Employee  
Medicare tax you reported on Form CT-1, line 5, enter the  
total corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected.  
In column 3, enter the difference between columns 1 and  
2.  
line 11 (column 4)  
If the amount in column 3 used a minus sign,  
also use a minus sign in column 4.  
Example—Prior year administrative error  
(incorrectly reported amount of Tier 1 Employee  
Additional Medicare Tax actually withheld). Nathan  
Smith's compensation exceeded the $200,000  
line 10 (column 1)  
- line 10 (column 2)  
withholding threshold for Tier 1 Employee Additional  
Medicare Tax in November 2023. The total compensation  
paid to Nathan for 2023 was $230,000. You withheld $270  
($30,000 x 0.009) from Nathan's compensation. However,  
on your 2023 Form CT-1 you mistakenly reported $3,000  
on line 6 (Compensation column), and Tier 1 Employee  
line 10 (column 3)  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
10  
Instructions for Form CT-1 X (Rev. 3-2024)  
 
Additional Medicare Tax withheld of $27 on line 6 (Tax  
column). You discover the error on March 15, 2024. This is  
an example of an administrative error that may be  
corrected in a later calendar year because the amount  
actually withheld differs from the amount reported on your  
2023 Form CT-1. Use Form CT-1 X, line 11, to correct the  
error as shown below.  
Combination of prior year administrative and nonad-  
ministrative errors. If you’re reporting both  
administrative errors and nonadministrative errors for the  
same prior year, enter the total corrected amount in  
column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. However, multiply  
only the amount of compensation reported in column 3  
that is related to administrative errors by 0.009 (0.9% tax  
rate). Don’t multiply any compensation reported in column  
3 that was related to nonadministrative errors by 0.009  
(0.9% tax rate). Use line 43 to explain in detail your  
corrections. The explanation must include the reasons for  
the corrections and a breakdown of the amount reported  
in column 3 into the amounts related to administrative  
errors and nonadministrative errors.  
Column 1 (corrected amount)  
Column 2 (Form CT-1, line 6  
(Compensation column))  
30,000.00  
- 3,000.00  
Column 3 (difference)  
27,000.00  
Use the difference in column 3 to determine your tax  
correction.  
Example—Combination of prior year  
Column 3 (difference)  
Tax rate (0.9%)  
Column 4 (tax correction)  
27,000.00  
x 0.009  
administrative and nonadministrative errors. Nathan  
Smith's compensation exceeded the $200,000  
243.00  
withholding threshold for Tier 1 Employee Additional  
Medicare Tax in November 2023. The total compensation  
paid to Nathan for 2023 was $230,000. You withheld $270  
($30,000 x 0.009) from Nathan's compensation. However,  
on your 2023 Form CT-1, you mistakenly reported $3,000  
on line 6 (Compensation column), and Tier 1 Employee  
Additional Medicare Tax withheld of $27 on line 6 (Tax  
column). The difference in compensation subject to Tier 1  
Employee Additional Medicare Tax related to this  
administrative error is $27,000 ($30,000 - $3,000).  
Leah Green's compensation exceeded the $200,000  
withholding threshold for Tier 1 Employee Additional  
Medicare Tax in December 2023. The total compensation  
paid to Leah for 2023 was $220,000. You were required to  
withhold $180 ($20,000 x 0.009) but you withheld nothing  
and didn’t report Leah's $20,000 in compensation subject  
to Tier 1 Employee Additional Medicare Tax withholding  
on line 6 of your 2023 Form CT-1.  
Be sure to explain the reasons for this correction on  
line 43.  
Prior year nonadministrative errors. You may correct  
only the compensation subject to Tier 1 Employee  
Additional Medicare Tax withholding that you reported on  
Form CT-1, line 6 (Compensation column). Enter the total  
corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected.  
In column 3, enter the difference between columns 1 and  
2.  
line 11 (column 1)  
- line 11 (column 2)  
line 11 (column 3)  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
You discover both errors on March 15, 2024. Use Form  
CT-1 X, line 11, to correct the errors as shown below.  
Column 1 (corrected amount)  
Column 2 (Form CT-1, line 6  
(Compensation column))  
50,000.00  
- 3,000.00  
Don’t multiply the amount in column 3 by 0.009 (0.9%  
tax rate). Leave column 4 blank and explain the reasons  
for this correction on line 43.  
Column 3 (difference)  
47,000.00  
Example—Prior year nonadministrative error  
(failure to withhold Tier 1 Employee Additional  
Medicare Tax when required). Leah Green's  
Determine the portion of compensation reported in  
column 3 that is related to the administrative error  
($47,000 - $20,000 (nonadministrative error) = $27,000  
(administrative error)). Multiply this portion of column 3 by  
0.009 (0.9% tax rate) to determine your tax correction.  
compensation exceeded the $200,000 withholding  
threshold for Tier 1 Employee Additional Medicare Tax in  
December 2023. The total compensation paid to Leah for  
2023 was $220,000. You were required to withhold $180  
($20,000 x 0.009) but you withheld nothing and didn’t  
report an amount on line 6 of your 2023 Form CT-1. You  
discover the error on March 15, 2024. File Form CT-1 X to  
correct the compensation subject to Tier 1 Employee  
Additional Medicare Tax withholding for your 2023 Form  
CT-1, but you may not correct the Tier 1 Employee  
Additional Medicare Tax withheld (column 4) because the  
error involves a previous year and the amount previously  
reported for the employee represents the actual amount  
withheld from the employee during 2023.  
Difference related to administrative error  
Tax rate (0.9%)  
27,000.00  
x 0.009  
Column 4 (tax correction)  
243.00  
Be sure to explain the reasons for these corrections on  
line 43. You must also report that $20,000 of the amount  
shown in column 3 was related to the correction of a prior  
year nonadministrative error and $27,000 of the amount  
Instructions for Form CT-1 X (Rev. 3-2024)  
11  
shown in column 3 was related to the correction of an  
administrative error.  
line 13 (column 1)  
- line 13 (column 2)  
line 13 (column 3)  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
12. Tier 2 Employee Tax—Compensation  
If you’re correcting the compensation, including tips  
reported, for the Tier 2 Employee tax you reported on  
Form CT-1, line 7, enter the total corrected amount in  
column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2.  
Multiply the amount in column 3 by 0.062 (6.2% tax  
rate) and enter the result in column 4.  
line 13 (column 3)  
x 0.062  
line 13 (column 4)  
line 12 (column 1)  
- line 12 (column 2)  
line 12 (column 3)  
If the amount in column 3 used a minus sign,  
also use a minus sign in column 4.  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
Example—Tier 1 Employer sick pay increased. You  
reported $8,000 as Tier 1 Employer sick pay in computing  
the tax on line 8 of your 2023 Form CT-1. In December  
2024, you discover that you overlooked $1,000 in sick pay  
for one of your employees. To correct the error, figure the  
difference on Form CT-1 X as shown.  
Multiply the amount in column 3 by the rate stated on  
line 7 of the Form CT-1 for the year that you’re  
correcting and enter the result in column 4. If the amount  
in column 3 used a minus sign, also use a minus sign in  
column 4.  
Example—Tier 2 Employee compensation  
decreased. Following Example—Tier 1 Employer  
compensation decreased in the instructions for line 6, the  
compensation that you counted twice was also Tier 2  
Employee compensation. Because you’re correcting your  
2023 Form CT-1 in this example, use the rate for line 7  
(4.9%) shown on that return. To correct the error, figure  
the difference on Form CT-1 X as shown.  
Column 1 (corrected amount)  
Column 2 (Form CT-1, line 8)  
Column 3 (difference)  
9,000.00  
- 8,000.00  
1,000.00  
Use the difference in column 3 to determine your tax  
correction.  
Column 3 (difference)  
Tax rate (6.2%)  
Column 4 (tax correction)  
1,000.00  
Column 1 (corrected amount)  
Column 2 (Form CT-1, line 7)  
Column 3 (difference)  
7,000.00  
- 9,000.00  
-2,000.00  
x
0.062  
62.00  
Be sure to explain the reasons for this correction on  
line 43.  
Use the difference in column 3 to determine your tax  
correction.  
14. Tier 1 Employer Medicare Tax—Sick Pay  
Column 3 (difference)  
Tax rate (4.9%)  
-2,000.00  
x 0.049  
If you’re correcting the sick pay for the Tier 1 Employer  
Medicare tax you reported on Form CT-1, line 9, enter the  
total corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected.  
In column 3, enter the difference between columns 1 and  
2.  
Column 4 (tax correction)  
-98.00  
Be sure to explain the reasons for this correction on  
line 43.  
line 14 (column 1)  
- line 14 (column 2)  
line 14 (column 3)  
For purposes of these instructions, all references  
to “sick pay” mean ordinary sick pay, not “qualified  
sick leave compensation.”  
TIP  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
13. Tier 1 Employer Tax—Sick Pay  
If you’re correcting the sick pay for the Tier 1 Employer tax  
you reported on Form CT-1, line 8, enter the total  
corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected.  
In column 3, enter the difference between columns 1 and  
2.  
Multiply the amount in column 3 by 0.0145 (1.45% tax  
rate) and enter the result in column 4.  
12  
Instructions for Form CT-1 X (Rev. 3-2024)  
17. Tier 1 Employee Additional Medicare  
Tax—Sick Pay  
You may use Form CT-1 X to correct errors to Tier 1  
Employee Additional Medicare Tax withholding for prior  
years if the amount reported on Form CT-1, line 12, isn’t  
the amount you actually withheld. This type of error is an  
administrative error.  
line 14 (column 3)  
0.0145  
line 14 (column 4)  
x
If the amount in column 3 used a minus sign,  
also use a minus sign in column 4.  
Be sure to explain the reasons for this correction on  
line 43.  
If a prior year error was a nonadministrative error, you  
may correct only the sick pay subject to Tier 1 Employee  
Additional Medicare Tax withholding that was originally  
reported on Form CT-1, line 12, or previously corrected on  
Form CT-1 X. You can’t correct the tax reported on Form  
CT-1, line 12.  
15. Tier 1 Employee Tax—Sick Pay  
If you’re correcting the sick pay for the Tier 1 Employee tax  
you reported on Form CT-1, line 10, enter the total  
corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected.  
In column 3, enter the difference between columns 1 and  
2.  
For more information on the types of errors that can be  
corrected on line 17, see the detailed examples in the  
instructions for line 11, earlier.  
line 15 (column 1)  
- line 15 (column 2)  
18. Tax Adjustments  
Don’t enter an amount on line 18 unless you need to  
correct any current year adjustments reported on Form  
CT-1, line 14. However, if you need to correct sick pay  
adjustments for prior years reported on Form CT-1,  
line 14, include the corrections in the calculations of Form  
CT-1 X, lines 13–17.  
line 15 (column 3)  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
Multiply the amount in column 3 by 0.062 (6.2% tax  
rate) and enter the result in column 4.  
Enter the corrected amount for tax adjustments in  
column 1. Enter the originally reported or previously  
corrected current year amount from Form CT-1, line 14, in  
column 2. In column 3, enter the difference between  
columns 1 and 2.  
line 15 (column 3)  
x 0.062  
line 15 (column 4)  
If the amount in column 3 used a minus sign,  
also use a minus sign in column 4.  
line 18 (column 1)  
- line 18 (column 2)  
line 18 (column 3)  
Be sure to explain the reasons for this correction on  
line 43.  
16. Tier 1 Employee Medicare Tax—Sick Pay  
If you’re correcting the sick pay for the Tier 1 Employee  
Medicare tax you reported on Form CT-1, line 11, enter  
the total corrected amount in column 1. In column 2, enter  
the amount you originally reported or as previously  
corrected. In column 3, enter the difference between  
columns 1 and 2.  
You may need to report negative numbers in any  
column. Make sure that the difference you enter in  
column 3 accurately represents the change to  
TIP  
adjustments originally reported or previously corrected on  
Form CT-1, line 14.  
Copy the amount in column 3 to column 4. Include any  
minus sign shown in column 3.  
line 16 (column 1)  
- line 16 (column 2)  
line 16 (column 3)  
On line 43, describe what you misreported on Form  
CT-1. Tell us which current year adjustments have  
changed, that is, fractions of cents; uncollected Tier 1  
Employee tax, Tier 1 Employee Medicare tax, or Tier 2  
Employee tax on tips; or credits for overpayments of  
penalty or interest paid on tax for earlier years.  
If the amount in column 2 is larger  
than the amount in column 1, use a  
minus sign in column 3.  
Multiply the amount in column 3 by 0.0145 (1.45% tax  
rate) and enter the result in column 4.  
Only use line 18 to correct adjustments for  
fractions of cents; uncollected Tier 1 Employee  
!
CAUTION  
tax, Tier 1 Employee Medicare tax, Tier 1  
line 16 (column 3)  
Employee Additional Medicare Tax, and Tier 2 Employee  
tax on tips; or credits for overpayments of penalty or  
interest previously reported. File a separate Form CT-1 X  
for each year being corrected.  
x
0.0145  
line 16 (column 4)  
If the amount in column 3 used a minus sign,  
also use a minus sign in column 4.  
Be sure to explain the reasons for this correction on  
line 43.  
Instructions for Form CT-1 X (Rev. 3-2024)  
13  
   
Example—Nonrefundable portion of credit for  
qualified sick and family leave compensation  
increased. You originally reported a $1,000  
19. Nonrefundable Portion of Credit for Qualified  
Sick and Family Leave Compensation for Leave  
Taken After March 31, 2020, and Before April 1,  
2021  
nonrefundable portion of credit for qualified sick and  
family leave compensation on your 2021 Form CT-1,  
line 16, but later determined that you understated qualified  
sick leave compensation eligible for the credit. You use  
Worksheet 1 to refigure the correct nonrefundable portion  
of the credit for qualified sick and family leave  
Form CT-1 X and these instructions use the terms  
“nonrefundable” and “refundable” when  
TIP  
discussing credits. The term “nonrefundable”  
means the portion of the credit which is limited by law to  
certain taxes. The term “refundable” means the portion of  
the credit which is in excess of those taxes.  
compensation and you determine that the correct credit is  
now $2,000. To correct the error, figure the difference on  
Form CT-1 X as shown below.  
If you’re correcting the nonrefundable portion of the  
credit for qualified sick and family leave compensation for  
leave taken after March 31, 2020, and before April 1,  
2021, that you reported on Form CT-1, line 16, enter the  
total corrected amount from Worksheet 1, Step 2, line 2j,  
in column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. For more information  
about the credit for qualified sick and family leave  
compensation, go to IRS.gov/PLC.  
Column 1 (corrected amount)  
Column 2 (Form CT-1, line 16)  
2,000.00  
- 1,000.00  
Column 3 (difference)  
1,000.00  
To properly show the credit increase as a reduction to  
your balance, enter the positive number in column 3 as a  
negative number in column 4. Here is how you would  
enter the numbers on Form CT-1 X, line 19.  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4.  
Column 1  
(corrected  
amount)  
Column 2  
(Form CT-1,  
line 16)  
Column 3  
(difference)  
Column 4  
(tax correction)  
2,000.00  
1,000.00  
1,000.00  
-1,000.00  
Adjustments to the nonrefundable portion of the  
credit for qualified sick and family leave  
TIP  
compensation for leave taken after March 31,  
Be sure to explain the reasons for this correction on  
line 43.  
2020, and before April 1, 2021, are reported on Form CT-1  
X, line 19, and adjustments to the refundable portion of  
the credit are reported on Form CT-1 X, line 24.  
20a. Nonrefundable Portion of Employee  
Retention Credit  
Use line 20a only for corrections to a 2020 or 2021 Form  
CT-1.  
Adjustments to qualified sick leave compensation and  
qualified family leave compensation for leave taken after  
March 31, 2020, and before April 1, 2021, are reported on  
Form CT-1 X, lines 27 and 29, respectively. Adjustments  
to qualified health plan expenses allocable to qualified  
sick leave compensation and qualified family leave  
compensation for leave taken after March 31, 2020, and  
before April 1, 2021, are reported on Form CT-1 X, lines  
28 and 30, respectively. For corrections to 2020 Form  
CT-1, line 16, the credit for qualified sick and family leave  
compensation is only available for compensation paid with  
respect to leave taken after March 31, 2020, and before  
January 1, 2021. For corrections to 2021, 2022, or 2023  
Form CT-1, line 16, the credit for qualified sick and family  
leave compensation is only available for compensation  
paid in 2021, 2022, or 2023 with respect to any leave  
taken after March 31, 2020, and before April 1, 2021. If  
you're correcting a year before 2020, don't enter any  
amount on line 19. If you claimed the credit for qualified  
sick and family leave compensation for leave taken after  
March 31, 2020, and before April 1, 2021, on your original  
Form CT-1, and you make any corrections on Form CT-1  
X for the year to amounts used to figure this credit, you’ll  
need to refigure the amount of the credit using Worksheet  
1. You’ll also use this worksheet to figure this credit if  
you’re claiming the credit for the first time on Form CT-1 X.  
For more information about the credit for qualified sick and  
family leave compensation, go to IRS.gov/PLC.  
Instructions for Qualified Compensation Paid After  
March 12, 2020, and Before July 1, 2021  
If you’re correcting the nonrefundable portion of the  
employee retention credit for qualified compensation paid  
after March 12, 2020, and before July 1, 2021, that you  
reported on Form CT-1, line 17 (2020) or line 17a (2021),  
enter the total corrected amount from Worksheet 2, Step  
2, line 2h, in column 1. In column 2, enter the amount you  
originally reported or as previously corrected. In column 3,  
enter the difference between columns 1 and 2.  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4. For an example of how to  
report amounts in columns 1–4, see the instructions for  
line 19, earlier.  
For more information about the employee retention  
credit for qualified compensation paid after March 12,  
2020, and before January 1, 2021, see Notice 2021-20.  
See Notice 2021-23, 2021-16 I.R.B. 1113, available at  
information about the employee retention credit for  
14  
Instructions for Form CT-1 X (Rev. 3-2024)  
 
qualified compensation paid after December 31, 2020,  
and before July 1, 2021. Also see section IV of Notice  
2021-49, 2021-34 I.R.B. 316, available at IRS.gov/irb/  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4. For an example of how to  
report amounts in columns 1–4 for an employment tax  
credit, see the instructions for line 19, earlier.  
Be sure to explain the reasons for this correction on  
line 43.  
For corrections to a 2020 Form CT-1, the  
For more information about the employee retention  
credit for qualified compensation paid after June 30, 2021,  
and before January 1, 2022, see Notice 2021-49 and Rev.  
Proc. 2021-33. See Notice 2021-65, 2021-51 I.R.B. 880,  
available at IRS.gov/2021-51_IRB#NOT-2021-65, for  
modifications to Notice 2021-49.  
employee retention credit is only available for  
TIP  
qualified compensation paid after March 12, 2020,  
and before January 1, 2021. For corrections to a 2021  
Form CT-1, the employee retention credit is only available  
for qualified compensation paid after December 31, 2020,  
and before October 1, 2021, unless the employer was a  
recovery startup business. An employer that was a  
recovery startup business could also claim the employee  
retention credit for compensation paid after September  
30, 2021, and before January 1, 2022. Adjustments to the  
nonrefundable portion of the employee retention credit for  
qualified compensation paid after March 12, 2020, and  
before July 1, 2021, are reported on Form CT-1 X,  
line 20a, and adjustments to the refundable portion of the  
credit are reported on Form CT-1 X, line 25a. Adjustments  
to qualified compensation for the employee retention  
credit are reported on Form CT-1 X, line 31. Adjustments  
to qualified health plan expenses allocable to the  
Be sure to explain the reasons for this correction on  
line 43.  
For corrections to a 2021 Form CT-1, the  
employee retention credit is only available for  
TIP  
qualified compensation paid after December 31,  
2020, and before October 1, 2021, unless the employer  
was a recovery startup business. An employer that was a  
recovery startup business could also claim the employee  
retention credit for compensation paid after September  
30, 2021, and before January 1, 2022. Adjustments to the  
nonrefundable portion of the employee retention credit for  
qualified compensation paid after June 30, 2021, and  
before January 1, 2022, are reported on Form CT-1 X,  
line 20a, and adjustments to the refundable portion of the  
credit are reported on Form CT-1 X, line 25a. Adjustments  
to qualified compensation for the employee retention  
credit are reported on Form CT-1 X, line 31. Adjustments  
to qualified health plan expenses allocable to the  
employee retention credit are reported on Form CT-1 X,  
line 32. If you claimed the employee retention credit on  
your original 2020 Form CT-1 or your original 2021 Form  
CT-1 for qualified compensation paid before July 1, 2021,  
and you make any corrections on Form CT-1 X for the year  
to amounts used to figure this credit, you’ll need to refigure  
the amount of the credit using Worksheet 2. You’ll also use  
this worksheet to figure the credit for qualified  
employee retention credit are reported on Form CT-1 X,  
line 32. If you claimed the employee retention credit on  
your original 2021 Form CT-1 and you make any  
compensation paid after March 12, 2020, and before July  
1, 2021, if you’re claiming the credit for the first time on  
Form CT-1 X.  
corrections on Form CT-1 X to amounts used to figure the  
credit for qualified compensation paid after June 30, 2021,  
and before January 1, 2022, you'll need to refigure the  
amount of the credit using Worksheet 4. You'll also use  
this worksheet to figure this credit if you’re claiming the  
credit for the first time on Form CT-1 X.  
Instructions for Qualified Compensation Paid After  
June 30, 2021, and Before January 1, 2022  
The Infrastructure Investment and Jobs Act  
amends section 3134 of the Internal Revenue  
!
CAUTION  
20b. Nonrefundable Portion of Credit for  
Qualified Sick and Family Leave Compensation  
for Leave Taken After March 31, 2021, and  
Before October 1, 2021  
If you’re correcting the nonrefundable portion of the credit  
for qualified sick and family leave compensation for leave  
taken after March 31, 2021, and before October 1, 2021,  
that you reported on Form CT-1, line 17b, enter the total  
corrected amount from Worksheet 3, Step 2, line 2r, in  
column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. For more information  
about the credit for qualified sick and family leave  
compensation, go to IRS.gov/PLC.  
Code, as enacted under the ARP, to limit the  
availability of the employee retention credit in the fourth  
quarter of 2021 to employers that are recovery startup  
businesses, as defined in section 3134(c)(5). Thus, for  
compensation paid after September 30, 2021, and before  
January 1, 2022, only the compensation paid by recovery  
startup businesses can be qualified compensation. See  
the 2021 revision of the Instructions for Form CT-1 for  
more information about a recovery startup business.  
If you're correcting the nonrefundable portion of the  
employee retention credit for qualified compensation paid  
after June 30, 2021, and before January 1, 2022, that you  
reported on Form CT-1, line 17a, enter the total corrected  
amount from Worksheet 4, Step 2, line 2h, in column 1. In  
column 2, enter the amount you originally reported or as  
previously corrected. In column 3, enter the difference  
between columns 1 and 2.  
For corrections to 2021, 2022 or 2023 Form CT-1,  
line 17b, the credit for qualified sick and family leave  
compensation is only available for compensation paid in  
2021, 2022, or 2023 with respect to leave taken after  
March 31, 2021, and before October 1, 2021. If you're  
Instructions for Form CT-1 X (Rev. 3-2024)  
15  
correcting a year before 2021, don't enter any amount on  
line 20b.  
of line 18. Combine these amounts and enter “800.00” in  
column 4 of line 21.  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4. For an example of how to  
report amounts in columns 1–4 for an employment tax  
credit, see the instructions for line 19, earlier.  
Line 6  
Line 7  
Line 18  
Line 21  
-500.00  
-100.00  
+ 1,400.00  
800.00  
Be sure to explain the reasons for this correction on  
22. Deferred amount of the Tier 1 Employer Tax  
line 43.  
Use Form CT-1 X, line 22, if you need to correct the  
deferred amount of the Tier 1 Employer tax that you  
reported on your 2020 Form CT-1, line 21. Enter the total  
corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected  
by you or the IRS. In column 3, enter the difference  
between columns 1 and 2.  
20c. Nonrefundable Portion of COBRA Premium  
Assistance Credit  
COBRA premium assistance was available for periods of  
coverage beginning on or after April 1, 2021, through  
periods of coverage beginning on or before September  
30, 2021. For more information, see Credit for COBRA  
Copy the amount in column 3 to column 4. However,  
because an increase to the deferred amount of Tier 1  
Employer tax defers the payment due, to properly show  
the amount as a deferral of payment, enter a positive  
number in column 3 as a negative number in column 4. A  
decrease to the deferred amount of the Tier 1 Employer  
tax decreases the payment you can defer and must be  
shown as a balance due item; therefore, to properly show  
the amount as a balance due item, enter a negative  
number in column 3 as a positive number in column 4.  
Premium payees that receive an election from an  
assistance eligible individual are entitled to the  
COBRA premium assistance credit for premiums  
TIP  
not paid during the quarter in which the election is  
received. See Notice 2021-31 for more information.  
If you’re correcting the nonrefundable portion of the  
COBRA premium assistance credit that you reported on  
Form CT-1, line 17c, enter the total corrected amount from  
Worksheet 5, Step 2, line 2g, in column 1. In column 2,  
enter the amount you originally reported or as previously  
corrected. In column 3, enter the difference between  
columns 1 and 2.  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4. For an example of how to  
report amounts in columns 1–4 for an employment tax  
credit, see the instructions for line 19, earlier.  
If you’re filing Form CT-1 X to increase the amount of  
the Tier 1 Employer tax (Form CT-1 X, line 6) and Tier 1  
Employer tax—Sick pay (Form CT-1 X, line 13) on  
compensation paid on or after March 27, 2020, and before  
January 1, 2021, so that there is an additional amount of  
Tier 1 Employer tax that hasn’t yet been paid, and hasn’t  
yet been deferred, then you may use Form CT-1 X to  
increase the amount of the deferred Tier 1 Employer tax  
originally reported on Form CT-1, line 21. If you’re filing  
Form CT-1 X to decrease the amount of Tier 1 Employer  
tax on compensation paid on or after March 27, 2020, and  
before January 1, 2021, so that there is a decrease in the  
amount of Tier 1 Employer tax that is eligible for deferral,  
then you must use Form CT-1 X to decrease the amount  
of the deferred Tier 1 Employer tax originally reported on  
Form CT-1, line 21, if the decrease in compensation  
causes the amount you originally deferred to exceed the  
amount that is now eligible for deferral. Otherwise, you  
may only correct the amount of the deferred Tier 1  
Employer tax if the amount originally reported on Form  
CT-1, line 21, isn’t the amount you actually deferred (for  
example, you incorrectly reported the amount that you  
actually deferred). If you already paid the correct amount  
of the Tier 1 Employer tax during the payroll tax deferral  
period, you may not subsequently defer the payment by  
filing Form CT-1 X. See IRS.gov/ETD for more information  
about the interaction of credits and the deferral of  
Be sure to explain the reasons for this correction on  
line 43.  
20d. Number of Individuals Provided COBRA  
Premium Assistance  
If you’re correcting the number of individuals provided  
COBRA premium assistance that you reported on Form  
CT-1, line 17d, enter the total corrected amount in column  
1. In column 2, enter the amount you originally reported or  
as previously corrected. In column 3, enter the difference  
between columns 1 and 2.  
Be sure to explain the reasons for this correction on  
line 43.  
employment tax deposits and payments.  
The deferred amount of the Tier 1 Employer tax was  
only available for deposits and payments due on or after  
March 27, 2020, and before January 1, 2021, as well as  
deposits and payments due after January 1, 2021, that  
were required for compensation paid during the applicable  
period. Generally, 50% of the deferred amounts were  
21. Subtotal  
Combine the amounts from column 4 on lines 6–20c and  
enter the result on line 21.  
Example. You entered “-500.00” in column 4 of line 6,  
“-100.00” in column 4 of line 7, and “1,400.00” in column 4  
16  
Instructions for Form CT-1 X (Rev. 3-2024)  
required to be paid by December 31, 2021, and the other  
50% was required to be paid by December 31, 2022.  
Because both December 31, 2021, and December 31,  
2022, were nonbusiness days, payments made on the  
next business day were considered timely. Any payments  
or deposits you made before December 31, 2021, were  
first applied against your payment due on December 31,  
2021, and then applied against your payment due on  
December 31, 2022. For more information about the  
deferral of employment tax deposits and payments,  
including when the deferral must be paid, go to IRS.gov/  
ETD.  
24. Refundable Portion of Credit for Qualified  
Sick and Family Leave Compensation for Leave  
Taken After March 31, 2020, and Before April 1,  
2021  
If you’re correcting the refundable portion of the credit for  
qualified sick and family leave compensation for leave  
taken after March 31, 2020, and before April 1, 2021, that  
you reported on Form CT-1, line 23, enter the total  
corrected amount from Worksheet 1, Step 2, line 2k, in  
column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. For more information  
about the credit for qualified sick and family leave  
compensation, go to IRS.gov/PLC.  
Be sure to explain the reasons for any corrections on  
line 43.  
23. Deferred Amount of the Tier 1 Employee Tax  
For corrections to 2020 Form CT-1, line 23, the credit  
for qualified sick and family leave compensation is only  
available for compensation paid with respect to leave  
taken after March 31, 2020, and before January 1, 2021.  
For corrections to 2021, 2022, or 2023 Form CT-1, line 23,  
the credit for qualified sick and family leave compensation  
is only available for compensation paid in 2021, 2022, or  
2023 with respect to any leave taken after March 31,  
2020, and before April 1, 2021. If you're correcting a year  
before 2020, don't enter any amount on line 24.  
Use Form CT-1 X, line 23, if you need to correct the  
deferred amount of the Tier 1 Employee tax that you  
reported on your 2020 Form CT-1, line 22. Enter the total  
corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected  
by you or the IRS. In column 3, enter the difference  
between columns 1 and 2.  
Copy the amount in column 3 to column 4. However,  
because an increase to the deferred amount of Tier 1  
Employee tax defers the payment due, to properly show  
the amount as a deferral of payment, enter a positive  
number in column 3 as a negative number in column 4. A  
decrease to the deferred amount of the Tier 1 Employee  
tax decreases the payment you can defer and must be  
shown as a balance due item; therefore, to properly show  
the amount as a balance due item, enter a negative  
number in column 3 as a positive number in column 4.  
You may only correct the amount of the deferred Tier 1  
Employee tax if the amount originally reported on Form  
CT-1, line 22, isn’t the amount you actually deferred (for  
example, you incorrectly reported the amount that you  
actually deferred). If you already paid the correct amount  
of the Tier 1 Employee tax, you may not subsequently  
defer the payment by filing Form CT-1 X.  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4. For an example of how to  
report amounts in columns 1–4, see the instructions for  
line 19, earlier.  
Be sure to explain the reasons for this correction on  
line 43.  
25a. Refundable Portion of Employee Retention  
Credit  
Use line 25a only for corrections to a 2020 or 2021 Form  
CT-1.  
For corrections to a 2020 Form CT-1, the  
The deferred amount of the Tier 1 Employee tax was  
only available for compensation of less than $4,000 paid  
to an employee in any biweekly pay period (or the  
equivalent threshold amount for other pay periods) paid  
on a pay date during the period beginning on September  
1, 2020, and ending on December 31, 2020. The due date  
for withholding and payment of the deferred Tier 1  
Employee tax was postponed until the period beginning  
on January 1, 2021, and ending on December 31, 2021.  
The employer was liable to pay the deferred Tier 1  
Employee tax to the IRS and was required to do so before  
January 1, 2022, to avoid interest, penalties, and additions  
to tax on those amounts. Because January 1, 2022, was a  
nonbusiness day, payments made on January 3, 2022,  
were considered timely. For more information about the  
deferral of employee social security tax, see Notice 2020-  
65, 2020-38 I.R.B. 567, available at IRS.gov/irb/  
employee retention credit is only available for  
TIP  
qualified compensation paid after March 12, 2020,  
and before January 1, 2021. For corrections to a 2021  
Form CT-1, the employee retention credit is only available  
for qualified compensation paid after December 31, 2020,  
and before October 1, 2021, unless the employer was a  
recovery startup business. An employer that was a  
recovery startup business could also claim the employee  
retention credit for compensation paid after September  
30, 2021, and before January 1, 2022.  
Instructions for Qualified Compensation Paid After  
March 12, 2020, and Before July 1, 2021  
If you’re correcting the refundable portion of the employee  
retention credit that you reported on Form CT-1, line 24  
(2020) or line 24a (2021), for qualified compensation paid  
after March 12, 2020, and before July 1, 2021, enter the  
total corrected amount from Worksheet 2, Step 2, line 2i,  
in column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
2020-38_IRB#NOT-2020-65; and Notice 2021-11,  
2021-06 I.R.B. 827, available at IRS.gov/irb/  
Be sure to explain the reasons for any corrections on  
line 43.  
Instructions for Form CT-1 X (Rev. 3-2024)  
17  
difference between columns 1 and 2. For more information  
about the employee retention credit for qualified  
compensation paid after March 12, 2020, and before  
January 1, 2021, see Notice 2021-20. See Notice  
2021-23 for more information about the employee  
retention credit for qualified compensation paid after  
December 31, 2020, and before July 1, 2021. Also see  
section IV of Notice 2021-49, and Rev. Proc. 2021-33.  
compensation is only available for compensation paid in  
2021, 2022, or 2023 with respect to leave taken after  
March 31, 2021, and before October 1, 2021. If you're  
correcting a year before 2021, don't enter any amount on  
line 25b.  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4. For an example of how to  
report amounts in columns 1–4 for an employment tax  
credit, see the instructions for line 19, earlier.  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4. For an example of how to  
report amounts in columns 1–4, see the instructions for  
line 19, earlier.  
Be sure to explain the reasons for this correction on  
line 43.  
25c. Refundable Portion of COBRA Premium  
Assistance Credit  
Be sure to explain the reasons for this correction on  
line 43.  
COBRA premium assistance was available for periods of  
coverage beginning on or after April 1, 2021, through  
periods of coverage beginning on or before September  
30, 2021. For more information, see Credit for COBRA  
Instructions for Qualified Compensation Paid After  
June 30, 2021, and Before January 1, 2022  
If you're correcting the refundable portion of the employee  
retention credit that you reported on Form CT-1, line 24a,  
for qualified compensation paid after June 30, 2021, and  
before January 1, 2022, enter the total corrected amount  
from Worksheet 4, Step 2, line 2i, in column 1. In column  
2, enter the amount you originally reported or as  
If you’re correcting the refundable portion of the  
COBRA premium assistance credit that you reported on  
Form CT-1, line 24c, enter the total corrected amount from  
Worksheet 5, Step 2, line 2h, in column 1. In column 2,  
enter the amount you originally reported or as previously  
corrected. In column 3, enter the difference between  
columns 1 and 2.  
previously corrected. In column 3, enter the difference  
between columns 1 and 2. For more information about the  
employee retention credit for qualified compensation paid  
after June 30, 2021, and before January 1, 2022, see  
2021-65 for modifications to Notice 2021-49.  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4. For an example of how to  
report amounts in columns 1–4 for an employment tax  
credit, see the instructions for line 19, earlier.  
Copy the amount in column 3 to column 4. However, to  
properly show the amount as a credit or balance due item,  
enter a positive number in column 3 as a negative number  
in column 4 or a negative number in column 3 as a  
positive number in column 4. For an example of how to  
report amounts in columns 1–4 for an employment tax  
credit, see the instructions for line 19, earlier.  
Be sure to explain the reasons for this correction on  
line 43.  
Be sure to explain the reasons for this correction on  
line 43.  
Corrections to Form CT-1, Line 26  
Form CT-1 X doesn't include a line to correct amounts  
reported on Form CT-1, line 26, for the total advances  
received from filing Form(s) 7200 for the year. If a  
discrepancy exists between the amount reported on Form  
CT-1 and the amount of advance payments issued, the  
IRS will generally correct the amount reported on Form  
CT-1, line 26, to match the amount of advance payments  
issued.  
25b. Refundable Portion of Credit for Qualified  
Sick and Family Leave Compensation for Leave  
Taken After March 31, 2021, and Before October  
1, 2021  
If you’re correcting the refundable portion of the credit for  
qualified sick and family leave compensation for leave  
taken after March 31, 2021, and before October 1, 2021,  
that you reported on Form CT-1, line 24b, enter the total  
corrected amount from Worksheet 3, Step 2, line 2s, in  
column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. For more information  
about the credit for qualified sick and family leave  
compensation, go to IRS.gov/PLC.  
26. Total  
Combine the amounts from column 4 on lines 21–25c and  
enter the result on line 26.  
Your credit. If the amount entered on line 26 is less than  
zero, for example, “-115.00,” you have a credit because  
you overreported your RRTA taxes.  
For corrections to 2021, 2022, or 2023 Form CT-1,  
line 24b, the credit for qualified sick and family leave  
If you checked the box on line 1, include this amount on  
Form CT-1, line 20 (“Total railroad retirement tax  
18  
Instructions for Form CT-1 X (Rev. 3-2024)  
 
deposits”) for the year during which you filed Form CT-1 X.  
Don’t make any changes to your Record of Railroad  
Retirement Tax Liability in Part II of Form CT-1 or on Form  
945-A, unless you were assessed an FTD penalty. For  
more information, see the Form 945-A instructions. The  
amounts reported on the record should reflect your actual  
tax liability for the period.  
amounts if you’re claiming any credits for the first time on  
Form CT-1 X. Use Worksheets 1–5, as applicable, to  
refigure your credits based on the corrected amounts  
reported in column 1. Be sure to explain the reasons for  
your corrections to lines 27–40 on line 43.  
27. Qualified Sick Leave Compensation for  
Leave Taken After March 31, 2020, and Before  
April 1, 2021  
If you checked the box on line 2, you’re filing a claim for  
refund or abatement of the amount shown.  
If your credit is less than $1, we will send a refund or  
apply it to your next return only if you ask us in writing to  
do so.  
Amount you owe. If the amount entered on line 26 is a  
positive number, you must pay the amount you owe by  
the time you file Form CT-1 X. You may not use any  
credit that you show on another Form CT-1 X to pay the  
amount you owe, even if you filed for the amount you owe  
and the credit at the same time.  
If you owe tax and are filing a timely Form CT-1 X, don’t  
file an amended Form 945-A unless you were assessed  
an FTD penalty caused by an incorrect, incomplete, or  
missing Form 945-A. Don’t include the tax increase  
reported on Form CT-1 X on any amended Form 945-A  
you file.  
If you’re correcting the qualified sick leave compensation  
for leave taken after March 31, 2020, and before April 1,  
2021, that you reported on Form CT-1, line 30, enter the  
total corrected amount for all employees in column 1. In  
column 2, enter the amount you originally reported on  
Form CT-1, line 30, or as previously corrected. In column  
3, enter the difference between columns 1 and 2.  
Qualified sick leave compensation reported on this line is  
compensation (determined without regard to the  
exclusions under section 3231(e)(1)) paid under the  
Emergency Paid Sick Leave Act (EPSLA) as enacted  
under the Families First Coronavirus Response Act  
(FFCRA) and as amended by the COVID-related Tax  
Relief Act of 2020. Enter the corrected amount from  
column 1 on Worksheet 1, Step 2, line 2a.  
28. Qualified Health Plan Expenses Allocable to  
Qualified Sick Leave Compensation for Leave  
Taken After March 31, 2020, and Before April 1,  
2021  
If you owe tax and are filing a late Form CT-1 X, that is,  
after the due date for Form CT-1 for the period in which  
you discovered the error, you must file an amended Form  
945-A with the Form CT-1 X. Otherwise, the IRS may  
assess an “averaged” FTD penalty. The total tax reported  
on Form 945-A, line M, must match the corrected tax  
(Form CT-1, line 19 (line 15 for years before 2020),  
combined with any correction reported on Form CT-1 X,  
line 21) for the year, less any previous abatements and  
interest-free tax assessments.  
If you’re correcting the qualified health plan expenses  
allocable to qualified sick leave compensation for leave  
taken after March 31, 2020, and before April 1, 2021, that  
you reported on Form CT-1, line 31, enter the total  
corrected amount for all employees in column 1. In column  
2, enter the amount you originally reported or as  
Payment methods. You may pay the amount you owe  
on line 26 electronically using the Electronic Federal Tax  
Payment System (EFTPS) or by a check or money order.  
previously corrected. In column 3, enter the difference  
between columns 1 and 2. Enter the corrected amount  
from column 1 on Worksheet 1, Step 2, line 2b.  
The preferred method of payment is EFTPS. For more  
information, go to EFTPS.gov or call 800-555-4477. To  
contact EFTPS using Telecommunications Relay Services  
(TRS) for people who are deaf, hard of hearing, or have a  
speech disability, dial 711 and then provide the TRS  
assistant the 800-555-4477 number above or  
800-733-4829. Additional information about EFTPS is also  
available in Pub. 966.  
29. Qualified Family Leave Compensation for  
Leave Taken After March 31, 2020, and Before  
April 1, 2021  
If you’re correcting the qualified family leave compensation  
for leave taken after March 31, 2020, and before April 1,  
2021, you reported on Form CT-1, line 32, enter the total  
corrected amount for all employees in column 1. In column  
2, enter the amount you originally reported on Form CT-1,  
line 32, or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. Qualified family  
leave compensation reported on this line is compensation  
(determined without regard to the exclusions under  
section 3231(e)(1)) paid under the Emergency Family and  
Medical Leave Expansion Act (Expanded FMLA) as  
enacted under the FFCRA and as amended by the  
COVID-related Tax Relief Act of 2020. Enter the corrected  
amount from column 1 on Worksheet 1, Step 2, line 2e.  
If you pay by check or money order, make it payable to  
“United States Treasury.” On your check or money order,  
be sure to write your EIN, “Form CT-1 X,and the year  
corrected.  
You don’t have to pay if the amount you owe is less than  
$1.  
Lines 27–40  
For lines 27–40, you’ll only enter amounts in columns 1, 2,  
and 3. These lines don’t have an entry space for column 4  
because these adjustments don’t directly result in an  
increase or decrease to your tax. The amounts entered on  
lines 27–38 are amounts that you use on Worksheets 1–5,  
as applicable, to figure your credits. If you reported an  
incorrect amount on lines 30–43 on your original Form  
CT-1, then you’ll use lines 27–40 of Form CT-1 X to report  
the correction. You’ll also use these lines to report  
Instructions for Form CT-1 X (Rev. 3-2024)  
19  
exclusions under section 3231(e)(1)) paid under the  
EPSLA as enacted under the FFCRA and amended for  
purposes of the ARP. Enter the corrected amount from  
column 1 on Worksheet 3, Step 2, line 2a.  
30. Qualified Health Plan Expenses Allocable to  
Qualified Family Leave Compensation for Leave  
Taken After March 31, 2020, and Before April 1,  
2021  
Be sure to explain the reasons for this correction on  
line 43.  
If you’re correcting the qualified health plan expenses  
allocable to qualified family leave compensation for leave  
taken after March 31, 2020, and before April 1, 2021, that  
you reported on Form CT-1, line 33, enter the total  
corrected amount for all employees in column 1. In column  
2, enter the amount you originally reported or as  
34. Qualified Health Plan Expenses Allocable to  
Qualified Sick Leave Compensation for Leave  
Taken After March 31, 2021, and Before October  
1, 2021  
previously corrected. In column 3, enter the difference  
between columns 1 and 2. Enter the corrected amount  
from column 1 on Worksheet 1, Step 2, line 2f.  
If you’re correcting the qualified health plan expenses  
allocable to qualified sick leave compensation for leave  
taken after March 31, 2021, and before October 1, 2021,  
that you reported on Form CT-1, line 37, enter the total  
corrected amount for all employees in column 1. In column  
2, enter the amount you originally reported or as  
31. Qualified Compensation for the Employee  
Retention Credit  
Use line 31 only for corrections to a 2020 or 2021 Form  
CT-1.  
previously corrected. In column 3, enter the difference  
between columns 1 and 2. Enter the corrected amount  
from column 1 on Worksheet 3, Step 2, line 2b.  
If you’re correcting the qualified compensation for the  
employee retention credit that you reported on Form CT-1,  
line 34, enter the total corrected amount for all employees  
in column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. Enter the corrected  
amount from column 1 on Worksheet 2, Step 2, line 2a, for  
qualified compensation paid after March 12, 2020, and  
before July 1, 2021. Enter the corrected amount from  
column 1 on Worksheet 4, Step 2, line 2a, for qualified  
compensation paid after June 30, 2021, and before  
January 1, 2022.  
Be sure to explain the reasons for this correction on  
line 43.  
35. Amounts Under Certain Collectively  
Bargained Agreements Allocable to Qualified  
Sick Leave Compensation for Leave Taken After  
March 31, 2021, and Before October 1, 2021  
If you’re correcting the amounts under certain collectively  
bargained agreements allocable to qualified sick leave  
compensation for leave taken after March 31, 2021, and  
before October 1, 2021, that you reported on Form CT-1,  
line 38, enter the total corrected amount for all employees  
in column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. Enter the corrected  
amount from column 1 on Worksheet 3, Step 2, line 2c.  
32. Qualified Health Plan Expenses for the  
Employee Retention Credit  
Use line 32 only for corrections to a 2020 or 2021 Form  
CT-1.  
If you’re correcting the qualified health plan expenses  
allocable to qualified compensation for the employee  
retention credit that you reported on Form CT-1, line 35,  
enter the total corrected amount for all employees in  
column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. Enter the corrected  
amount from column 1 on Worksheet 2, Step 2, line 2b, for  
qualified health plan expenses allocable to qualified  
compensation paid after March 12, 2020, and before July  
1, 2021. Enter the corrected amount from column 1 on  
Worksheet 4, Step 2, line 2b, for qualified health plan  
expenses allocable to qualified compensation paid after  
June 30, 2021, and before January 1, 2022.  
Be sure to explain the reasons for this correction on  
line 43.  
36. Qualified Family Leave Compensation for  
Leave Taken After March 31, 2021, and Before  
October 1, 2021  
If you’re correcting the qualified family leave compensation  
for leave taken after March 31, 2021, and before October  
1, 2021, that you reported on Form CT-1, line 39, enter the  
total corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected.  
In column 3, enter the difference between columns 1 and  
2. Qualified family leave compensation reported on this  
line is compensation (determined without regard to the  
exclusions under section 3231(e)(1)) paid under the  
Expanded FMLA as enacted under the FFCRA and  
amended for purposes of the ARP. Enter the corrected  
amount from column 1 on Worksheet 3, Step 2, line 2g.  
33. Qualified Sick Leave Compensation for  
Leave Taken After March 31, 2021, and Before  
October 1, 2021  
If you’re correcting the qualified sick leave compensation  
for leave taken after March 31, 2021, and before October  
1, 2021, that you reported on Form CT-1, line 36, enter the  
total corrected amount in column 1. In column 2, enter the  
amount you originally reported or as previously corrected.  
In column 3, enter the difference between columns 1 and  
2. Qualified sick leave compensation reported on this line  
is compensation (determined without regard to the  
Be sure to explain the reasons for this correction on  
line 43.  
20  
Instructions for Form CT-1 X (Rev. 3-2024)  
filed 2021 Form CT-1 but you’re now claiming the  
employee retention credit as a recovery startup business,  
complete line 39 with the total of the corrected amounts  
included on Form CT-1 X, lines 20a and 25a.  
37. Qualified Health Plan Expenses Allocable to  
Qualified Family Leave Compensation for Leave  
Taken After March 31, 2021, and Before October  
1, 2021  
If you’re correcting the qualified health plan expenses  
allocable to qualified family leave compensation for leave  
taken after March 31, 2021, and before October 1, 2021,  
that you reported on Form CT-1, line 40, enter the total  
corrected amount for all employees in column 1. In column  
2, enter the amount you originally reported or as  
Recovery startup business. For the third quarter of  
2021, a recovery startup business is an employer that:  
Began carrying on a trade or business after February  
15, 2020;  
Had average annual gross receipts of $1 million or less  
for the 3 tax years ending with the tax year before the  
calendar quarter in which the employee retention credit is  
claimed; and  
previously corrected. In column 3, enter the difference  
between columns 1 and 2. Enter the corrected amount  
from column 1 on Worksheet 3, Step 2, line 2h.  
Be sure to explain the reasons for this correction on  
line 43.  
Isn’t otherwise eligible for the employee retention credit  
because business operations weren’t fully or partially  
suspended due to a governmental order or because gross  
receipts (within the meaning of section 448(c) or, if you're  
a tax-exempt organization, section 6033) weren’t less than  
80% of the gross receipts for the same calendar quarter in  
calendar year 2019.  
38. Amounts Under Certain Collectively  
Bargained Agreements Allocable to Qualified  
Family Leave Compensation for Leave Taken  
After March 31, 2021, and Before October 1,  
2021  
If you’re correcting the amounts under certain collectively  
bargained agreements allocable to qualified family leave  
compensation for leave taken after March 31, 2021, and  
before October 1, 2021, that you reported on Form CT-1,  
line 41, enter the total corrected amount for all employees  
in column 1. In column 2, enter the amount you originally  
reported or as previously corrected. In column 3, enter the  
difference between columns 1 and 2. Enter the corrected  
amount from column 1 on Worksheet 3, Step 2, line 2i.  
40. If You’re Eligible for the Employee Retention  
Credit in the Fourth Quarter of 2021 Solely  
Because Your Business Is a Recovery Startup  
Business…  
For the fourth quarter of 2021, only a recovery startup  
business may claim the employee retention credit.  
Whether you complete line 40 to tell us if you're eligible for  
the employee retention credit in the fourth quarter of 2021  
solely because your business is a recovery startup  
business depends on its applicability and whether you  
originally reported an amount on your 2021 Form CT-1,  
line 43.  
Be sure to explain the reasons for this correction on  
line 43.  
If you reported the total of any amounts included on  
lines 17a and 24a on line 43 for the fourth quarter on your  
originally filed 2021 Form CT-1 but that is no longer  
accurate, explain in detail on line 43 why you no longer  
think that you’re a recovery startup business.  
Recovery startup businesses are limited to a  
maximum employee retention credit of $50,000  
!
CAUTION  
per quarter. Don’t enter more than $50,000 per  
quarter in total on lines 20a and 25a.  
If you didn’t report the total of any amounts included on  
lines 17a and 24a on line 43 for the fourth quarter on your  
originally filed 2021 Form CT-1 and this still doesn’t apply,  
don’t complete line 40.  
39. If You’re Eligible for the Employee Retention  
Credit in the Third Quarter of 2021 Solely  
Because Your Business Is a Recovery Startup  
Business…  
Whether you complete line 39 to tell us if you're eligible for  
the employee retention credit in the third quarter of 2021  
solely because your business is a recovery startup  
business depends on its applicability and whether you  
originally reported an amount on your 2021 Form CT-1,  
line 42.  
If you didn’t report the total of any amounts included on  
lines 17a and 24a for the fourth quarter on your originally  
filed 2021 Form CT-1 but you’re now claiming the  
employee retention credit as a recovery startup business,  
complete line 40 with the total of the corrected amounts  
included on Form CT-1 X, lines 20a and 25a.  
For the fourth quarter of 2021, a recovery startup  
business is an employer that began carrying on a trade or  
business after February 15, 2020, and had average  
annual gross receipts of $1 million or less for the 3 tax  
years ending with the tax year before the calendar quarter  
in which the employee retention credit is claimed.  
If you reported the total of any amounts included on  
lines 17a and 24a on line 42 for the third quarter on your  
originally filed 2021 Form CT-1 but that is no longer  
accurate, explain in detail on line 43 why you no longer  
think that you’re a recovery startup business and the  
reasons that you still qualify for the employee retention  
credit.  
If you didn’t report the total of any amounts included on  
lines 17a and 24a on line 42 for the third quarter on your  
originally filed 2021 Form CT-1 and this still doesn’t apply,  
don’t complete line 39.  
If you didn’t report the total of any amounts included on  
lines 17a and 24a for the third quarter on your originally  
Instructions for Form CT-1 X (Rev. 3-2024)  
21  
“The $1,000 difference shown in column 3 of lines 6  
and 7 was discovered on May 15, 2024, during an internal  
payroll audit. We discovered that we included $1,000 of  
compensation for one of our employees twice. This  
correction removes the reported compensation that was  
never paid.”  
Part 4: Explain Your Corrections for  
the Calendar Year You’re Correcting  
41. Corrections of Both Underreported and  
Overreported Amounts  
Check the box on line 41 if any corrections you entered on  
lines 6–20d, 22–25c, or 27–40 in column 3 reflect both  
underreported and overreported amounts.  
Example. If you had an increase to Tier 1 Employer  
compensation of $15,000 for Nathan Smith and a  
decrease to Tier 1 Employer compensation of $5,000 for  
Leah Green, you would enter $10,000 on line 6, column 3.  
That $10,000 represents the net change resulting from  
corrections.  
Part 5: Sign Here  
You must complete all five pages of Form CT-1 X and sign  
it on page 5. If you don’t sign, the processing of Form  
CT-1 X will be delayed.  
Who must sign the Form CT-1 X? The following  
persons are authorized to sign the return for each type of  
business entity.  
Sole proprietorship—The individual who owns the  
business.  
On line 43, you must explain the reason for both the  
Corporation (including a limited liability company  
$15,000 increase and the $5,000 decrease.  
(LLC) treated as a corporation)—The president, vice  
42. Did You Reclassify Any Workers?  
president, or other principal officer duly authorized to sign.  
Partnership (including an LLC treated as a  
Check the box on line 42 if you reclassified any workers to  
be independent contractors or nonemployees. Also check  
this box if the IRS (or you) determined that workers you  
treated as independent contractors or nonemployees  
should be classified as employees. On line 43, provide a  
detailed reason why any worker was reclassified.  
partnership) or unincorporated organization—A  
responsible and duly authorized partner, member, or  
officer having knowledge of its affairs.  
Single-member LLC treated as a disregarded entity  
for federal income tax purposes—The owner of the  
LLC or a principal officer duly authorized to sign.  
Return not filed because you didn’t treat any workers  
as employees. If you didn’t previously file Form CT-1  
because you mistakenly treated all workers as  
independent contractors or as nonemployees, file a Form  
CT-1 for each delinquent year.  
Write “Misclassified Employees” in bold letters  
across the top margin of page 1 of each Form CT-1.  
Complete Form CT-1 using the Instructions for Form CT-1.  
Attach a Form CT-1 X to each Form CT-1. Complete the  
top of Form CT-1 X, including the date you discovered the  
error, and provide a detailed explanation on line 43.  
Trust or estate—The fiduciary.  
A duly authorized agent of the taxpayer may also sign  
Form CT-1 X if a valid power of attorney has been filed.  
Alternative signature method. Corporate officers or  
duly authorized agents may sign Form CT-1 X by rubber  
stamp, mechanical device, or computer software program.  
For details and required documentation, see Rev. Proc.  
2005-39, 2005-28 I.R.B. 82, available at IRS.gov/irb/  
Paid Preparer Use Only  
43. Explain Your Corrections  
A paid preparer must sign Form CT-1 X and provide the  
information in the Paid Preparer Use Only section of Part 5  
if the preparer was paid to prepare Form CT-1 X and isn’t  
an employee of the filing entity. Paid preparers must sign  
paper returns with a manual signature. The preparer must  
give the employer the return to file with the IRS and  
include a copy of the return for the employer's records.  
Treasury regulations require you to explain in detail the  
grounds and facts relied upon to support each correction.  
On line 43, describe in detail each correction you entered  
in column 4 on lines 6–20d and 22–25c. Also use line 43  
to describe corrections made on lines 27–40. If you need  
more space, attach additional sheets, but be sure to write  
your name, EIN, “Form CT-1 X,and the calendar year  
you’re correcting on the top of each sheet.  
If you’re a paid preparer, write your Preparer Tax  
Identification Number (PTIN) in the space provided.  
Include your complete address. If you work for a firm, write  
the firm's name and the EIN of the firm. You can apply for  
a PTIN online or by filing Form W-12. For more information  
about applying for a PTIN online, go to IRS.gov/PTIN. You  
can’t use your PTIN in place of the EIN of the tax  
preparation firm.  
You must describe the events that caused the  
underreported or overreported amounts. Explanations  
such as “RRTA compensation was overstated,”  
“administrative/payroll errors were discovered,or “taxes  
were not withheld” are insufficient and may delay the  
processing of your Form CT-1 X because the IRS may  
need to ask for a more complete explanation.  
Generally, you’re not required to complete this section if  
you’re filing the return as a reporting agent and have a  
valid Form 8655 on file with the IRS. However, a reporting  
agent must complete this section if the reporting agent  
offered legal advice, for example, advising the client on  
determining whether its workers are employees or  
independent contractors for federal tax purposes.  
Provide the following information in your explanation of  
each correction.  
Form CT-1 X line number(s) affected.  
Date you discovered the error.  
Difference (amount of the error).  
Cause of the error.  
You may report the information in paragraph form. The  
following paragraph is an example.  
22  
Instructions for Form CT-1 X (Rev. 3-2024)  
       
Worksheet 1. Adjusted Credit for Qualified Sick and Family Leave  
Compensation for Leave Taken After March 31, 2020, and Before  
April 1, 2021  
Keep for Your Records  
You must use this worksheet if you claimed the credit for qualified sick and family leave compensation for leave taken after March 31, 2020, and  
before April 1, 2021, on your original Form CT-1 and you correct any amounts used to figure the credit for qualified sick and family leave  
compensation for leave taken after March 31, 2020, and before April 1, 2021. You'll also use this worksheet to figure this credit if you're claiming it  
for the first time on Form CT-1 X.  
Step 1.  
Step 2.  
Figure the Tier 1 Employer Tax  
1a  
1b  
1c  
Enter the amount from Form CT-1, line 1 (Tax Column), or, if corrected, enter the  
amount from Form CT-1 X, line 6, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a  
Enter the amount from Form CT-1, line 8 (Tax Column), or, if corrected, enter the  
amount from Form CT-1 X, line 13, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b  
Tier 1 Employer tax. Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
1c  
Figure the credit for qualified sick and family leave compensation  
2a  
Qualified sick leave compensation reported on Form CT-1, line 30, or if corrected, the  
amount from Form CT-1 X, line 27, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a  
2a(i) Enter the amount, if any, included on line 2a that is compensation excluded from the  
definition of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . . 2a(i)  
2a(ii) Subtract line 2a(i) from line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2a(ii)  
2b  
Qualified health plan expenses allocable to qualified sick leave compensation reported  
on Form CT-1, line 31, or, if corrected, Form CT-1 X, line 28, column 1 . . . . . . . . . . . . 2b  
2c  
Tier 1 Employer Medicare tax on qualified sick leave compensation. Multiply line 2a(ii)  
by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c  
2d  
2e  
Credit for qualified sick leave compensation. Add lines 2a, 2b, and 2c . . . . . . . . .  
2d  
Qualified family leave compensation reported on Form CT-1, line 32, or, if corrected,  
the amount from Form CT-1 X, line 29, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e  
2e(i) Enter the amount, if any, included on line 2e that is compensation excluded from the  
definition of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . .  
2e(i)  
2e(ii) Subtract line 2e(i) from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e(ii)  
2f  
Qualified health plan expenses allocable to qualified family leave compensation  
reported on Form CT-1, line 33, or, if corrected, the amount from Form CT-1 X, line 30,  
column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2f  
2g  
Tier 1 Employer Medicare tax on qualified family leave compensation. Multiply  
line 2e(ii) by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g  
2h  
2i  
Credit for qualified family leave compensation. Add lines 2e, 2f, and 2g . . . . . . .  
2h  
2i  
Credit for qualified sick and family leave compensation. Add lines 2d  
and 2h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2j  
Nonrefundable portion of credit for qualified sick and family leave  
compensation for leave taken after March 31, 2020, and before April 1, 2021.  
Enter the smaller of line 1c or line 2i. Enter this amount on Form CT-1 X, line 19,  
column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2j  
2k  
Refundable portion of credit for qualified sick and family leave compensation  
for leave taken after March 31, 2020, and before April 1, 2021. Subtract line 2j  
from line 2i and enter this amount on Form CT-1 X, line 24, column 1 . . . . . . . . . . . . .  
2k  
Instructions for Form CT-1 X (Rev. 3-2024)  
23  
 
Worksheet 2. Adjusted Employee Retention Credit for Qualified  
Compensation Paid After March 12, 2020, and Before January 1,  
2021, for a 2020 Form CT-1 or Qualified Compensation Paid After  
December 31, 2020, and Before July 1, 2021, for a 2021 Form CT-1  
Keep for Your Records  
You must use this worksheet if you claimed the employee retention credit for qualified compensation paid after March 12, 2020, and before  
January 1, 2021, on your original 2020 Form CT-1 or for qualified compensation paid after December 31, 2020, and before July 1, 2021, on  
your original 2021 Form CT-1 and you correct any amounts used to figure the employee retention credit. You'll also use this worksheet to  
figure this credit if you're claiming it for the first time on Form CT-1 X.  
Step 1.  
Figure the Tier 1 Employer Tax  
1a  
If you completed Worksheet 1 to claim a credit for qualified sick and family leave  
compensation for leave taken after March 31, 2020, and before April 1, 2021, and  
you’re also claiming the employee retention credit, enter the amount from Worksheet  
1, Step 1, line 1c, and go to Step 2. Otherwise, complete lines 1b–1d below and  
then go to Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a  
1b  
1c  
1d  
Enter the amount from Form CT-1, line 1 (Tax Column), or, if corrected, the amount  
from Form CT-1 X, line 6, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b  
Enter the amount from Form CT-1, line 8 (Tax Column), or, if corrected, the amount  
from Form CT-1 X, line 13, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c  
Tier 1 Employer tax. Combine lines 1b and 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
1d  
Step 2.  
Figure the employee retention credit for qualified compensation paid after March 12, 2020, and before July 1,  
2021  
Caution: For qualified compensation paid before January 1, 2021, the cumulative  
total for 2020 that can be claimed on lines 2a and 2b can't exceed $10,000 per  
employee. For qualified compensation paid after December 31, 2020, and before  
July 1, 2021, the total amount included on lines 2a and 2b is limited to a maximum of  
$10,000 per employee in each of the first quarter and the second quarter of 2021  
($20,000 in total for purposes of this worksheet).  
2a  
2b  
Qualified compensation (excluding qualified health plan expenses) for the employee  
retention credit for qualified compensation paid after March 12, 2020, and before  
January 1, 2021, for a 2020 Form CT-1 or qualified compensation paid after  
December 31, 2020, and before July 1, 2021, for a 2021 Form CT-1 (this qualified  
compensation is included in the total reported on Form CT-1, line 34, or, if corrected,  
Form CT-1 X, line 31, column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a  
Qualified health plan expenses allocable to qualified compensation for the employee  
retention credit for qualified compensation paid after March 12, 2020, and before  
January 1, 2021, for a 2020 Form CT-1 or qualified compensation paid after  
December 31, 2020, and before July 1, 2021, for a 2021 Form CT-1 (these qualified  
health plan expenses are included in the total reported on Form CT-1, line 35, or, if  
corrected, Form CT-1 X, line 32, column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b  
2c  
2d  
Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2c  
Retention credit. If you're correcting your 2020 Form CT-1, multiply line 2c by 50%  
(0.50). If you're correcting your 2021 Form CT-1, multiply line 2c by 70%  
(0.70) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2d  
2e  
2f  
Enter the amount of the Tier 1 Employer tax from Step 1, line 1a, or, if applicable,  
Step 1, line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e  
Enter the nonrefundable portion of the credit for qualified sick and family leave  
compensation for leave taken after March 31, 2020, and before April 1, 2021 (this  
amount may come from Worksheet 1, Step 2, line 2j, in these instructions if you're  
correcting that credit for the year or you may need to enter the credit claimed on your  
original Form CT-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2f  
2g  
2h  
Subtract line 2f from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2g  
Nonrefundable portion of employee retention credit. Enter the smaller of line 2d  
or line 2g. Enter this amount on Form CT-1 X, line 20a, column 1 . . . . . . . . . . . . . . .  
2h  
2i  
2i  
Refundable portion of employee retention credit. Subtract line 2h from line 2d  
and enter this amount on Form CT-1 X, line 25a, column 1 . . . . . . . . . . . . . . . . . . . .  
24  
Instructions for Form CT-1 X (Rev. 3-2024)  
 
Worksheet 3. Adjusted Credit for Qualified Sick and Family Leave  
Compensation for Leave Taken After March 31, 2021, and Before  
October 1, 2021  
Keep for Your Records  
You must use this worksheet if you claimed the credit for qualified sick and family leave compensation for leave taken after March 31, 2021, and before  
October 1, 2021, on your original Form CT-1 and you correct any amounts used to figure the credit for qualified sick and family leave compensation for leave  
taken after March 31, 2021, and before October 1, 2021. You'll also use this worksheet to figure this credit if you're claiming it for the first time on Form CT-1 X.  
Step 1.  
Figure the Tier 1 Employer Medicare Tax  
1a  
1b  
1c  
Enter the amount from Form CT-1, line 2 (Tax Column), or, if corrected, the amount from Form  
CT-1 X, line 7, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a  
Enter the amount from Form CT-1, line 9 (Tax Column), or, if corrected, the amount from Form  
CT-1 X, line 14, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b  
Tier 1 Employer Medicare tax. Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
1c  
Step 2.  
Figure the credit for qualified sick and family leave compensation  
2a  
Qualified sick leave compensation for leave taken after March 31, 2021, and before October 1,  
2021, reported on Form CT-1, line 36, or, if corrected, the amount from Form CT-1 X, line 33,  
column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a  
2a(i) Enter the amount, if any, included on line 2a that is compensation excluded from the definition  
of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a(i)  
2a(ii) Subtract line 2a(i) from line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2a(ii)  
2a(iii) Enter the amount, if any, included on line 2a that was not included as compensation on Form  
CT-1, lines 1, 4, 8, and 10, or, if corrected, on Form CT-1 X, lines 6, 9, 13, and 15, because the  
qualified sick leave compensation was limited by the Tier 1 compensation base . . . . . . . . . . . 2a(iii)  
2a(iv) Subtract line 2a(iii) from line 2a(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2a(iv)  
2b  
Qualified health plan expenses allocable to qualified sick leave compensation taken after March  
31, 2021, and before October 1, 2021, reported on Form CT-1, line 37, or, if corrected, the  
amount from Form CT-1 X, line 34, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b  
2c  
Amounts under certain collectively bargained agreements allocable to qualified sick leave  
compensation for leave taken after March 31, 2021, and before October 1, 2021, reported on  
Form CT-1, line 38, or, if corrected, the amount from Form CT-1 X, line 35, column 1 . . . . . . . 2c  
2d  
2e  
Tier 1 Employer tax on qualified sick leave compensation. Multiply line 2a(iv) by 6.2%  
(0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d  
Tier 1 Employer Medicare tax on qualified sick leave compensation. Multiply line 2a(ii) by 1.45%  
(0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e  
2f  
Credit for qualified sick leave compensation. Add lines 2a, 2b, 2c, 2d, and 2e . . . . . . . . .  
2f  
2g  
Qualified family leave compensation for leave taken after March 31, 2021, and before October  
1, 2021, reported on Form CT-1, line 39, or, if corrected, the amount from Form CT-1 X, line 36,  
column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g  
2g(i) Enter the amount, if any, included on line 2g that is compensation excluded from the definition  
of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g(i)  
2g(ii) Subtract line 2g(i) from line 2g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2g(iii) Enter the amount, if any, included on line 2g that was not included as compensation on Form  
2g(ii)  
CT-1, lines 1, 4, 8, and 10, or, if corrected, on Form CT-1 X, lines 6, 9, 13, and 15, because the  
qualified family leave compensation was limited by the Tier 1 compensation base . . . . . . . . . 2g(iii)  
2g(iv) Subtract line 2g(iii) from line 2g(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2h  
2g(iv)  
Qualified health plan expenses allocable to qualified family leave compensation taken after  
March 31, 2021, and before October 1, 2021, reported on Form CT-1, line 40, or, if corrected,  
the amount from Form CT-1 X, line 37, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2h  
2i  
Amounts under certain collectively bargained agreements allocable to qualified family leave  
compensation for leave taken after March 31, 2021, and before October 1, 2021, reported on  
Form CT-1, line 41, or, if corrected, the amount from Form CT-1 X, line 38, column 1 . . . . . . . 2i  
2j  
Tier 1 Employer tax on qualified family leave compensation. Multiply line 2g(iv) by 6.2%  
(0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2j  
2k  
Tier 1 Employer Medicare tax on qualified family leave compensation. Multiply line 2g(ii) by  
1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2k  
2l  
2m  
2n  
Credit for qualified family leave compensation. Add lines 2g, 2h, 2i, 2j, and 2k . . . . . . . . .  
Credit for qualified sick and family leave compensation. Add lines 2f and 2l . . . . . . . . . .  
2l  
2m  
Enter any employee retention credit claimed under section 2301 of the CARES Act with respect  
to qualified compensation paid after March 31, 2021, and before July 1, 2021, that was also  
taken into account for the credit for qualified sick and family leave compensation . . . . . . . . . . 2n  
2o  
Enter any credit claimed under section 41 for increasing research activities with respect to any  
compensation taken into account for the credit for qualified sick and family leave  
compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2o  
2p  
2q  
Add lines 2n and 2o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2p  
Credit for qualified sick and family leave compensation after adjusting for other credits.  
Subtract line 2p from line 2m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2q  
2r  
2r  
Nonrefundable portion of credit for qualified sick and family leave compensation for  
leave taken after March 31, 2021, and before October 1, 2021. Enter the smaller of line 1c  
or line 2q. Enter this amount on Form CT-1 X, line 20b, column 1 . . . . . . . . . . . . . . . . . . . . .  
2s  
Refundable portion of credit for qualified sick and family leave compensation for leave  
taken after March 31, 2021, and before October 1, 2021. Subtract line 2r from line 2q and  
enter this amount on Form CT-1 X, line 25b, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2s  
Instructions for Form CT-1 X (Rev. 3-2024)  
25  
 
Worksheet 4. Adjusted Employee Retention Credit for Qualified  
Compensation Paid After June 30, 2021, and Before January 1,  
2022  
Keep for Your Records  
You must use this worksheet if you claimed the employee retention credit for qualified compensation paid after June 30, 2021, and before  
January 1, 2022, on your original 2021 Form CT-1 and you correct any amounts used to figure the employee retention credit for qualified  
compensation paid after June 30, 2021, and before January 1, 2022. You'll also use this worksheet to figure this credit if you're claiming it  
for the first time on Form CT-1 X.  
Step 1.  
Figure the Tier 1 Employer Medicare Tax  
1a  
If you completed Worksheet 3 to claim a credit for qualified sick and family leave  
compensation for leave taken after March 31, 2021, and before October 1, 2021,  
and you’re also claiming the employee retention credit, enter the amount from  
Worksheet 3, Step 1, line 1c, and go to Step 2. Otherwise, complete lines 1b–1d  
below and then go to Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a  
1b  
1c  
1d  
Enter the amount from Form CT-1, line 2 (Tax Column), or, if corrected, the amount  
from Form CT-1 X, line 7, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b  
Enter the amount from Form CT-1, line 9 (Tax Column), or, if corrected, the amount  
from Form CT-1 X, line 14, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c  
Tier 1 Employer Medicare tax. Combine lines 1b and 1c . . . . . . . . . . . . . . . . . . .  
1d  
Step 2.  
Figure the employee retention credit for qualified compensation paid after June 30, 2021, and before January 1,  
2022  
Caution: You must be a recovery startup business to claim the employee retention  
credit for qualified compensation paid after September 30, 2021, and before  
January 1, 2022 (fourth quarter 2021). The total amount included on lines 2a and 2b  
is limited to a maximum of $10,000 per employee in each of the third quarter and the  
fourth quarter of 2021 ($20,000 in total for purposes of this worksheet).  
2a  
2b  
Qualified compensation (excluding qualified health plan expenses) for the employee  
retention credit for qualified compensation paid after June 30, 2021, and before  
January 1, 2022 (this qualified compensation is included in the total reported on  
Form CT-1, line 34, or if corrected, Form CT-1 X, line 31, column 1) . . . . . . . . . . . . 2a  
Qualified health plan expenses allocable to qualified compensation for the  
employee retention credit for qualified compensation paid after June 30, 2021, and  
before January 1, 2022 (these qualified health plan expenses are included in the  
total reported on Form CT-1, line 35, or if corrected, Form CT-1 X, line 32, column  
1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b  
2c  
2d  
Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2c  
Retention credit. Multiply line 2c by 70% (0.70). If you qualify for the employee  
retention credit solely because your business is a recovery startup business, don't  
enter more than $50,000 for each of the third quarter and the fourth quarter of 2021  
($100,000 in total for the year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2d  
2e  
2f  
Enter the amount of the Tier 1 Employer Medicare tax from Step 1, line 1a, or, if  
applicable, Step 1, line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e  
Enter the amount of the nonrefundable portion of the credit for qualified sick and  
family leave compensation for leave taken after March 31, 2021, and before October  
1, 2021 (this amount may come from Worksheet 3, Step 2, line 2r, in these  
instructions if you're correcting that credit or you may need to enter the credit  
claimed on your original Form CT-1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2f  
2g  
2h  
Subtract line 2f from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2g  
Nonrefundable portion of employee retention credit. Enter the smaller of  
line 2d or line 2g. Enter this amount on Form CT-1 X, line 20a, column 1 . . . . . . . .  
2h  
2i  
2i  
Refundable portion of employee retention credit. Subtract line 2h from line 2d  
and enter this amount on Form CT-1 X, line 25a, column 1 . . . . . . . . . . . . . . . . . . .  
26  
Instructions for Form CT-1 X (Rev. 3-2024)  
 
Keep for Your Records  
Worksheet 5. Adjusted COBRA Premium Assistance Credit  
You must use this worksheet if you claimed the COBRA premium assistance credit on your original Form CT-1 and you correct any amounts used to figure the  
COBRA assistance credit. You'll also use this worksheet to figure this credit if you're claiming it for the first time on Form CT-1 X.  
Step 1.  
Figure the Tier 1 Employer Medicare Tax  
1a  
If you completed Worksheet 3 or Worksheet 4, and you’re also claiming the COBRA premium  
assistance credit, enter the amount from Worksheet 3, Step 1, line 1c, or Worksheet 4, line 1a  
or 1d (as applicable). Otherwise, complete lines 1b–1d below and then go to Step 2 . . . . . . .  
1a  
1d  
1b  
1c  
1d  
Enter the amount from Form CT-1, line 2 (Tax Column), or, if corrected, the amount from Form  
CT-1 X, line 7, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b  
Enter the amount from Form CT-1, line 9 (Tax Column), or, if corrected, the amount from Form  
CT-1 X, line 14, column 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c  
Tier 1 Employer Medicare tax. Add lines 1b and 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
Step 2.  
Figure the COBRA premium assistance credit  
2a  
Enter the COBRA premium assistance that you provided for periods of coverage beginning on  
or after April 1, 2021, through periods of coverage beginning on or before September 30,  
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a  
2b  
2c  
Enter the amount of the Tier 1 Employer Medicare tax from Step 1, line 1a, or, if applicable,  
Step 1, line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b  
Enter the amount of the nonrefundable portion of the credit for qualified sick and family leave  
compensation for leave taken after March 31, 2021, and before October 1, 2021 (this amount  
may come from Worksheet 3, Step 2, line 2r, in these instructions if you're correcting that credit  
or you may need to enter the credit claimed on your original Form CT-1) . . . . . . . . . . . . . . . 2c  
2d  
2e  
Enter the amount of the nonrefundable portion of the employee retention credit (this amount  
may come from Worksheet 4, Step 2, line 2h, in these instructions if you're correcting that credit  
or you may need to enter the credit claimed on your original Form CT-1) . . . . . . . . . . . . . . . 2d  
Other nonrefundable credits used against the Tier 1 Employer Medicare tax. Add lines  
2c and 2d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e  
2f  
Subtract line 2e from line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2f  
2g  
Nonrefundable portion of the COBRA premium assistance credit. Enter the smaller of  
line 2a or line 2f. Enter this amount on Form CT-1 X, line 20c, column 1 . . . . . . . . . . . . . . . .  
2g  
2h  
2h  
Refundable portion of the COBRA premium assistance credit. Subtract line 2g from  
line 2a and enter this amount on Form CT-1 X, line 25c, column 1 . . . . . . . . . . . . . . . . . . .  
Instructions for Form CT-1 X (Rev. 3-2024)  
27  
 
material in the administration of any Internal Revenue law.  
Generally, tax returns and return information are  
confidential, as required by section 6103.  
How Can You Get Forms, Instructions,  
and Publications From the IRS?  
You can download or print some of the forms and  
publications you may need on IRS.gov/Forms.  
The time needed to complete and file Form CT-1 X will  
vary depending on individual circumstances. The  
estimated average time is:  
Otherwise, you can go to IRS.gov/OrderForms to  
place an order and have forms mailed to you. The IRS will  
process your order for forms and publications as soon as  
possible. Don’t resubmit requests you’ve already sent us.  
You can get forms and publications faster online.  
Recordkeeping .  
Learning about the law or the form.  
Preparing and sending the form to the IRS  
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39 hr., 13 min.  
1 hr., 12 min.  
1 hr., 53 min.  
Paperwork Reduction Act Notice. We ask for the  
information on this form to carry out the Internal Revenue  
laws of the United States. You’re required to give us this  
information. We need it to ensure that you’re complying  
with these laws and to allow us to figure and collect the  
right amount of tax.  
You’re not required to provide the information requested  
on a form that is subject to the Paperwork Reduction Act  
unless the form displays a valid OMB control number.  
Books or records relating to a form or its instructions must  
be retained as long as their contents may become  
If you have comments concerning the accuracy of  
these time estimates or suggestions for making this form  
simpler, we would be happy to hear from you. You can  
send us comments from IRS.gov/FormComments. Or you  
can write to the Internal Revenue Service, Tax Forms and  
Publications Division, 1111 Constitution Ave. NW,  
IR-6526, Washington, DC 20224. Don’t send Form CT-1 X  
to this address. Instead, see Where Should You File Form  
CT-1 X, earlier.  
28  
Instructions for Form CT-1 X (Rev. 3-2024)