Revised IRS Form 941-X for 2020

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Recent changes to Form 941-X for Quarter 2, 2020

Updated on January 20, 2021 - 10:30 AM by Admin, TaxBandits

IRS form 941 has been revised to accommodate COVID-19 relief measures announced by the government. Accordingly, the
IRS Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, has also been revised for the 2nd quarter of 2020.

Read the following sections to know more about updated Form 941-X for quarter 2, 2020:

1. Overview of Form 941-X

IRS Form 941, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, is a correction form used to correct the previously filed Form 941. For each incorrect Form 941, you have to file a separate
Form 941-X.

While filing Form 941-X, you should report the following details:

  • Overreported taxes - Reported more tax amount.
  • Underreported taxes - Reported less tax amount.

If you’re filing Form 941-X for reporting underreported taxes, you should pay the tax amount while filing it. For overreported taxes, you can claim a refund or credit for the next return.

2. When should Form 941-X be filed?

Form 941-X should be filed when you find errors on a previously filed return, Form 941. The following amounts can be corrected using this form.

  • Wages, tips, and other compensation
  • Income tax withheld from wages, tips, and other compensation
  • Taxable social security wages
  • Taxable social security tips
  • Taxable Medicare wages and tips
  • Taxable wages and tips subject to Additional Medicare Tax withholding
  • Qualified small business payroll tax credit for increasing research activities

If you figured out errors in the number of employees or Part 2 of Form 2, do not file Form 941-X.

3. What are the latest changes in Form 941-X for quarter 2, 2020?

Form 941-X has been revised to adjust the fields according to the new Form 941. You can now correct the following values in Form 941 of Quarter 2, 2020.

  • Qualified sick and family leave wages and its credits
  • Employee retention credit
  • Deferred employer share of Social Security tax

Qualified sick and family leave wages and its credits

Errors related to qualified sick and family leave wages can be reported as follows:

If you have figured out errors in, Form 941 Correct the values in Form 941-X
Qualified sick leave wages Line 5a (i) Line 9
Qualified family leave wages Line 5a (ii) Line 10
Non Refundable portion of credit for qualified sick and family leave wages Line 11b Line 17
Refundable portion of credit for qualified sick and family leave wages Line 13c Line 25
Qualified health plan expenses allocable to qualified sick leave wages Line 19 Line 28
Qualified health plan expenses allocable to qualified sick leave wages Line 20 Line 29

Employee retention credit

Errors related to employee retention credit can be reported as follows:

If you have figured out errors in, Form 941 Correct the values in Form 941-X
Non Refundable portion of employee retention credit Line 11c Line 18
Refundable portion of employee retention credit Line 13d Line 26
Qualified wages for the employee retention credit Line 21 Line 30
Qualified health plan wages reported on Form 941, Line 21 Line 22 Line 31
Qualified wages paid between March 13 and March 31, 2020, for the employee retention credit Line 24 Line 33
Qualified health plan expenses allocable to wages reported on line 24 Line 13b Line 24

Deferred employer share of Social Security tax

Errors related to employee retention credit can be reported as follows:

If you have figured out errors in, Form 941 Correct the values in Form 941-X
Deferred amount of the employer share of social security tax Line 13b Line 24

4. Which form should be used to correct the previously filed Form 941?

If you want to file a correction form for the return filed in the first quarter of 2020 and prior, you should use existing Form 941-X.

Revised Form 941-X should be used to correct the values reported in Form 941 second quarter of 2020.

5. Complete and Download Form 941-X via TaxBandits

Employers can now easily complete Form 941-X at TaxBandits to correct the misreported values in Form 941, quarter 2, 2020. Download the filled Form 941-X for free and mail it to the IRS.

Get started now with TaxBandits.

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