Formularz CT-1 X Instrukcje
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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
of the Instructions for Form CT-1, select the link for "All
Form CT-1 Revisions" under "Other Items You May Find
Useful."
Page
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
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
Part 4: Explain Your Corrections for the
Worksheet 1. Adjusted Credit for Qualified Sick and
Family Leave Compensation for Leave Taken
After March 31, 2020, and Before April 1,
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
Worksheet 3. Adjusted Credit for Qualified Sick and
Family Leave Compensation for Leave Taken
After March 31, 2021, and Before October 1,
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,
Worksheet 5. Adjusted COBRA Premium
How Can You Get Forms, Instructions, and
Future Developments
For the latest information about developments related to
Form CT-1 X and its instructions, such as legislation
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
!
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
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
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
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
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
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
IRS.gov/irb/2017-14_IRB#RP-2017-28, provides
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/
2021-33 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
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
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
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
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
credit or Tier 1 tax deferral, later.
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
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
!
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).
Publications From the IRS, later.
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
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
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.
a credit on Form CT-1, earlier.
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
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
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
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
for Filing Form CT-1 X, earlier.
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
for Filing Form CT-1 X, earlier.
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
•
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.
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
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
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
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
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.”
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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
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
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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
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
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
you’re claiming the credit for the first time on Form CT-1 X.
For more information about the credit for qualified sick and
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),
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,
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
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,
Proc. 2021-33. See Notice 2021-65, 2021-51 I.R.B. 880,
modifications to Notice 2021-49.
employee retention credit is only available for
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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
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
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
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
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
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
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
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
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
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
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
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
in column 1. In column 2, enter the amount you originally
reported or as previously corrected. In column 3, enter the
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
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
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
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
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
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
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
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
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
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
The preferred method of payment is EFTPS. For more
•
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
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
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
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
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
qualified compensation paid after March 12, 2020, and
before July 1, 2021. Enter the corrected amount from
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
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
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
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
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
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
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
The time needed to complete and file Form CT-1 X will
vary depending on individual circumstances. The
estimated average time is:
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
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
CT-1 X, earlier.
28
Instructions for Form CT-1 X (Rev. 3-2024)