Form 941-X Instructions for 2024

1. Complete Employer Information

Firstly, complete all the employer's information in the Form 941-x

• Box 1 - Enter all the employer information

  In the box 1, enter the EIN, name, trade name, and address of the employer.

• Box 2 - Return You’re Correcting

  In box 2,

  • Check the box based on the type of return you are correcting
  • Check the appropriate quarter that you are correcting
  • Enter the calendar year of the Form 941 you’re correcting.

• Box 3 - Enter the date you discovered the error

  In box 3, enter the date when you have found the error, If you have multiple errors in the form then enter the earliest date you discovered them.

2. Part 1 - Underreported/ Overreported Tax Information

Part 1 collects the information regarding the adjusted employment tax return and the claim

• Line 1: Adjusted employment tax return

  You must check the box in line 1

  • If you want to correct the overreported taxes,
  • If you want to correct the underreported taxes, Or
  • Both the underreported and overreported taxes.

  On checking this box any negative amount shown in line 27 is considered as a credit to Form 941 and Form 944.

• Line 2: Claim

  You must check this box only if you are correcting overreported taxes and claiming a refund or abatement for the negative amount in line 27.

3. Part 2 - Complete the certifications

Part 2 is to complete all the information by checking the boxes. Line 3 is meant for underreported taxes and lines 4 and 5 are for overreported taxes.

• Line 3: (Certifying Underreporting Adjustments)

  I certify that I’ve filed or will file Forms W-2, Wage and Tax Statement, or Forms W-2c, Corrected Wage and Tax Statement, as required.

  Check the box on line 3 to agree on the statement that you filed or will file Form W2 or Form w2c to show the correct amount of wages to your employees.

• Line 4: (Certifying Overreporting Adjustments)

  Line 4 and 5: Line 4 and 5 certifications are related to the repayment or reimbursement and require consent from your employees to file a claim on their behalf.

4. Part 3 - Enter the corrections for the quarter

Part 3 is used for the corrections related to the wages, federal income tax withheld, social security, sick & family leave wages, COBRA credit, and employee retention credit are reported.

• Line 6: Wages, tips, and other compensation

• Line 7: Federal income tax withheld from wages, tips, and other compensation

• Line 8: Taxable social security wages

• Line 9 and 10: Qualified sick leave wages and Qualified family leave wages

• Line 11 to 13: Taxable Social Security Tips and Taxable Medicare Wages & tips

• Line 14: Section 3121(q) Notice and Demand—Tax due on unreported tips

• Line 15: Tax adjustments

• Line 16: Qualified small business payroll tax credit for increasing research activities

• Line 17: Nonrefundable portion of the credit for qualified sick and family leave wages for leave taken before
  April 1, 2021

• Line 18a to 18b: Nonrefundable portion of employee retention credit and qualified sick and family leave wages

• Line 18c: Nonrefundable portion of COBRA premium assistance credit

• Line 18d: Number of individuals provided COBRA premium assistance

• Line 19 to 22: Special addition to wages for federal income tax and FICA taxes

If you are correcting any of the information mentioned above, enter the details in the particular field, or else leave it blank.

• Line 23: Enter the sum of amounts on lines 7 through 22

• Line 24: Reserved for future.

• Line 25 to 26c: Refundable portion of credit for qualified sick and family leave wages and employee retention credit.

• Line 27: Enter the sum of amounts on lines 23 through 26c.

• Line 28 to 31a: Qualified health plan for qualified sick and family leave wages and employee retention credit.

• Line 31b: check the box only if you are eligible for employee retention credit

• Line 32: Credit from Form 5884-C, line 11

If you are correcting any of the information mentioned above, enter the details in the particular field, or else leave it blank.

• Line 33a to 34: Reserved for future use

• Lines 35 to 40: apply only to quarters beginning after March 31, 2021

5. Part 4 - Explain the reason for correction for the particular quarter

Part 4 used in Form 941-x, elaborates the reason for the corrections entered in the Form.

• Line 41: Check the box if the corrections you entered on a line include both underreported and overreported amounts.

• Line 42: Check the box if any corrections involve reclassified workers(Independent contractor, non-employee).

• Line 43: You must give us a detailed explanation of how you determined your corrections

6. Part 5 - Signature

Finally, after completing all the information in Form 941-x sign it on the required box.

Who must sign the Form 941-X

The following authorized persons are required to sign the return for each type of business

• Sole proprietorship - Individual who owns the business.
• Corporation - the president, Vice president, or other principal officer of the corporation
• Partnership - A responsible person or the authorized partners
• Single member LLC treated as a disagreed entity for federal tax purposes - The owner of the LLC or the principal is authorized to sign.
• Trust or estate - The fiduciary is authorized to sign

Paid Preparer Use Only

If you are a paid preparer, you must sign Form 941-x and provide the details in the paid preparer use-only section.

Information required for the paid preparer use-only section

• Enter the PTIN
• Enter the name, address, and Firm’s name
• Check the box in the right corner, only if you are a self-employed individual

7. E-file Form 941-X with TaxBandits in Minutes

Know the 941-X instructions to e-file 941-X for the 2024 tax year

Follow the instructions given below to e-file Form 941-X for 2024

• Create the free TaxBandits account
• Choose the Form 941-X
• Enter the details and the corrections to be made
• Review and Transmit to the IRS.