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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                          instructions don't discuss who is eligible to claim the credit 
unless otherwise noted.                                                      for qualified sick and family leave compensation, the 
                                                                             employee retention credit, or the COBRA premium 
Contents                                                              Page
                                                                             assistance credit. The current Instructions for Form CT-1 
Future Developments     . . . . . . . . . . . . . . . . . . . . . . . .   1
                                                                             are available at IRS.gov/CT1. If you need a prior revision 
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1  of the Instructions for Form CT-1, select the link for "All 
General Instructions: Understanding Form CT-1 X . . . .                   3  Form CT-1 Revisions" under "Other Items You May Find 
What Is the Purpose of Form CT-1 X?                   . . . . . . . . .   3  Useful."
Where Can You Get Help?             . . . . . . . . . . . . . . . . . .   4
When Should You File Form CT-1 X? . . . . . . . . . .                     4  Reminders
Is There a Deadline for Filing Form CT-1 X?                   . . . . .   5  The COVID-19 related credit for qualified sick and 
Where Should You File Form CT-1 X?                    . . . . . . . . .   5  family leave compensation is limited to leave taken 
How Should You Complete Form CT-1 X?                      . . . . . . .   5  after March 31, 2020, and before October 1, 2021. 
Overview of the Process           . . . . . . . . . . . . . . . . . . .   6  The credit for qualified sick and family leave 
Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . .   6  compensation, as enacted under the Families First 
                                                                             Coronavirus Response Act (FFCRA) and amended and 
Part 1: Select ONLY One Process                 . . . . . . . . . . . .   6
                                                                             extended by the COVID-related Tax Relief Act of 2020, is 
Part 2: Complete the Certifications . . . . . . . . . . . .               7  for leave taken after March 31, 2020, and before April 1, 
Part 3: Enter the Corrections for the Calendar                               2021, and the credit for qualified sick and family leave 
    Year You’re Correcting . . . . . . . . . . . . . . . . . . .          8  compensation under sections 3131, 3132, and 3133 of 
Part 4: Explain Your Corrections for the                                     the Internal Revenue Code, as enacted under the 
    Calendar Year You’re Correcting             . . . . . . . . . . .     22 American Rescue Plan Act of 2021 (the ARP), is for leave 
Part 5: Sign Here       . . . . . . . . . . . . . . . . . . . . . . .     22 taken after March 31, 2021, and before October 1, 2021. 
Worksheet 1. Adjusted Credit for Qualified Sick and                          For more information about the credit for qualified sick and 
Family Leave Compensation for Leave Taken                                    family leave compensation, go to IRS.gov/PLC.
After March 31, 2020, and Before April 1,                                    Corrections to amounts reported on Form CT-1, lines 
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      23 16, 23, 30, 31, 32, and 33, for the credit for qualified sick 
Worksheet 2. Adjusted Employee Retention Credit                              and family leave compensation for leave taken after March 
for Qualified Compensation Paid After March                                  31, 2020, and before April 1, 2021, are reported on Form 
12, 2020, and Before January 1, 2021, for a                                  CT-1 X, lines 19, 24, 27, 28, 29, and 30, respectively. 
2020 Form CT-1 or Qualified Compensation                                     Corrections to amounts reported on Form CT-1, lines 17b, 
Paid After December 31, 2020, and Before July                                24b, 36, 37, 38, 39, 40, and 41, for the credit for qualified 
1, 2021, for a 2021 Form CT-1             . . . . . . . . . . . . . .     24 sick and family leave compensation for leave taken after 
Worksheet 3. Adjusted Credit for Qualified Sick and                          March 31, 2021, and before October 1, 2021, are reported 
Family Leave Compensation for Leave Taken                                    on Form CT-1 X, lines 20b, 25b, 33, 34, 35, 36, 37, and 
After March 31, 2021, and Before October 1,                                  38, respectively.
2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      25 The COVID-19 related employee retention credit has 
Worksheet 4. Adjusted Employee Retention Credit                              expired. The employee retention credit enacted under 
for Qualified Compensation Paid After June 30,                               the Coronavirus Aid, Relief, and Economic Security 
2021, and Before January 1, 2022                . . . . . . . . . . .     26 (CARES) Act and amended and extended by the Taxpayer 
Worksheet 5. Adjusted COBRA Premium                                          Certainty and Disaster Tax Relief Act of 2020 was limited 
Assistance Credit . . . . . . . . . . . . . . . . . . . . . . .           27 to qualified compensation paid after March 12, 2020, and 
How Can You Get Forms, Instructions, and                                     before July 1, 2021. The employee retention credit under 
Publications From the IRS? . . . . . . . . . . . . . . . .                28 section 3134 of the Internal Revenue Code, as enacted by 
                                                                             the ARP and amended by the Infrastructure Investment 
Future Developments                                                          and Jobs Act, was limited to qualified compensation paid 
For the latest information about developments related to                     after June 30, 2021, and before October 1, 2021, unless 
Form CT-1 X and its instructions, such as legislation                        the employer was a recovery startup business. An 
enacted after they were published, go to IRS.gov/CT1X.                       employer that was a recovery startup business could also 
                                                                             claim the employee retention credit for qualified 
    Before you proceed with these instructions and 
                                                                             compensation paid after September 30, 2021, and before 
TIP completing Form CT-1 X, you'll need a copy of the 
                                                                             January 1, 2022. For more information about the 
    Instructions for Form CT-1 because these 
                                                                             employee retention credit, including an eligibility checklist, 
instructions don't repeat all of the information included in 
                                                                             frequently asked questions, information on identifying 
the Instructions for Form CT-1. For example, these 
                                                                             employee retention credit scam promotions, and 

Feb 12, 2024                                                          Cat. No. 20339E

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directions on how to withdraw a previously filed claim for If you claimed the credit for qualified sick and
the employee retention credit, go to IRS.gov/ERC. ! family leave compensation for leave taken after
Corrections to amounts reported on Form CT-1, lines CAUTION March 31, 2020, and before April 1, 2021, and you
17a (line 17 for calendar year 2020), 24a (line 24 for make any corrections on Form CT-1 X to amounts used to
calendar year 2020), 34, and 35, for the employee figure this credit, you'll need to refigure the amount of this
retention credit are reported on Form CT-1 X, lines 20a, credit using Worksheet 1. You'll also use this worksheet to
25a, 31, and 32, respectively. However, how you figure the figure this credit if you’re claiming it for the first time on
employee retention credit for qualified compensation paid Form CT-1 X. If you claimed the credit for qualified sick
after March 12, 2020, and before July 1, 2021, is different and family leave compensation for leave taken after March
from how you figure the credit for qualified compensation 31, 2021, and before October 1, 2021, and you make any
paid after June 30, 2021, and before January 1, 2022. For corrections on Form CT-1 X to amounts used to figure this
corrections to qualified compensation paid after June 30, credit, you'll need to refigure the amount of this credit
2021, you may need to complete line 39 to tell us if you're using Worksheet 3. You'll also use this worksheet to figure
eligible for the employee retention credit solely because this credit if you’re claiming it for the first time on Form
your business is a recovery startup business. For CT-1 X. If you claimed the employee retention credit for
corrections to qualified compensation paid after compensation paid after March 12, 2020, and before July
September 30, 2021, you may need to complete line 40 to 1, 2021, and you make any corrections on Form CT-1 X to
tell us if you’re eligible for the employee retention credit amounts used to figure this credit, you'll need to refigure
solely because your business is a recovery startup the amount of this credit using Worksheet 2. You'll also
business. use this worksheet to figure this credit if you’re claiming it
for the first time on Form CT-1 X. If you claimed the
Credit for COBRA premium assistance payments is employee retention credit for compensation paid after
limited to periods of coverage beginning on or after June 30, 2021, and before January 1, 2022, and you make
April 1, 2021, through periods of coverage beginning any corrections on Form CT-1 X to amounts used to figure
on or before September 30, 2021. Section 9501 of the this credit, you'll need to refigure the amount of this credit
ARP provides for COBRA premium assistance in the form using Worksheet 4. You'll also use this worksheet to figure
of a full reduction in the premium otherwise payable by this credit if you’re claiming it for the first time on Form
certain individuals and their families who elect COBRA CT-1 X. If you claimed the COBRA premium assistance
continuation coverage due to a loss of coverage as the credit and you make any corrections on Form CT-1 X to
result of a reduction in hours or an involuntary termination amounts used to figure this credit, you'll need to refigure
of employment (assistance eligible individuals). This the amount of this credit using Worksheet 5. You'll also
COBRA premium assistance was available for periods of use this worksheet to figure this credit if you’re claiming it
coverage beginning on or after April 1, 2021, through for the first time on Form CT-1 X.
periods of coverage beginning on or before September
30, 2021. A premium payee was entitled to the COBRA If a line on Form CT-1 X doesn’t apply to you,
premium assistance credit at the time an eligible individual TIP leave it blank. If you’re correcting a year that
elects coverage. Therefore, other than in rare began before 2020, you must leave blank lines 19,
circumstances, due to the COBRA notice and election 20a, 22, 23, 24, 25a, 27, 28, 29, 30, 31, and 32. If you’re
period requirements (generally, employers have 60 days correcting a year before 2021, you must leave blank lines
to provide notice and assistance eligible individuals have 20b, 20c, 20d, 25b, 25c, 33, 34, 35, 36, 37, 38, 39, and
60 days to elect coverage), January 2022 was generally 40. If you're correcting a year after 2021, you must leave
the end of the period in which an assistance eligible blank lines 20a, 25a, 31, 32, 39, and 40.
individual would have elected coverage. Under some rare
circumstances, it may be possible for a premium payee to Employee consents to support a claim for refund.
become entitled to the COBRA premium assistance credit Rev. Proc. 2017-28, 2017-14 I.R.B. 1061, available at
after January 2022. In these rare instances, the credit was IRS.gov/irb/2017-14_IRB#RP-2017-28, provides
still claimed on Form CT-1 filed for 2022 and an guidance to employers on the requirements for employee
adjustment, if needed, can be made on Form CT-1 X for consents used by an employer to support a claim for
2022. Employers eligible to claim the COBRA premium refund of overcollected Railroad Retirement Tax Act
assistance credit after 2022 must file Form CT-1 X to (RRTA) taxes. The revenue procedure clarifies the basic
claim the credit. requirements for both a request for employee consent and
For more information on COBRA premium assistance for the employee consent, and permits a consent to be
payments and the credit, see Notice 2021-31, 2021-23 requested, furnished, and retained in an electronic format
I.R.B. 1173, available at IRS.gov/irb/ as an alternative to paper format. The revenue procedure
2021-23_IRB#NOT-2021-31; and Notice 2021-46, also contains guidance concerning when an employer
2021-33 I.R.B. 303, available at IRS.gov/irb/ may claim a refund of only the employer share of
2021-33_IRB#NOT-2021-46. overcollected RRTA taxes. The revenue procedure
requires that any request for consent include an Additional
Corrections to amounts reported on Form CT-1, lines
Medicare Tax notice indicating that any claim on the
17c, 17d, and 24c, for the COBRA premium assistance
employee’s behalf won’t include a claim for overpaid Tier 1
credit are reported on Form CT-1 X, lines 20c, 20d, and
Employee Additional Medicare Tax.
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)

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Employee Additional Medicare Tax withholding. find Rev. Rul. 2009-39, 2009-52 I.R.B. 951 at IRS.gov/irb/
Compensation (including tips) and sick pay subject to Tier 2009-52_IRB#RR-2009-39.
1 Employee Additional Medicare Tax withholding are
reported on Form CT-1, lines 6 and 12. Certain errors When you discover an error on a previously filed Form
discovered on a previously filed Form CT-1 are corrected CT-1, you must:
on Form CT-1 X, lines 11 and 17. However, you can’t file • Correct that error using Form CT-1 X;
Form CT-1 X to correct Tier 1 Employee Additional • File a separate Form CT-1 X for each Form CT-1 that
Medicare Tax actually withheld from an employee in a you’re correcting; and
prior year. See the instructions for lines 11 and 17, later, • Generally, file Form CT-1 X separately. Don’t file Form
for more information on the types of errors that can be CT-1 X with Form CT-1. However, see the instructions for
corrected and how the correction is reported on Form line 42, later, for an exception.
CT-1 X. For more information about Tier 1 Employee
Additional Medicare Tax withholding, see the Instructions If you didn’t file a Form CT-1 for 1 or more years, don’t
for Form CT-1 or go to IRS.gov/ADMTfaqs. use Form CT-1 X. Instead, file Form CT-1 for each of
those years. Also, see When Should You File Form CT-1
X, later. However, if you didn’t file Forms CT-1 because
General Instructions: you improperly treated workers as independent
contractors or nonemployees and are now reclassifying
Understanding Form CT-1 X
them as employees, see the instructions for line 42, later.
What Is the Purpose of Form CT-1 X? Unless otherwise specified in these instructions,
TIP an underreported employment tax credit or Tier 1
Use Form CT-1 X to correct errors on a previously filed
tax deferral should be treated like an overreported
Form CT-1. Use Form CT-1 X to correct:
tax amount. An overreported employment tax credit or Tier
• Tier 1 Employee tax, Tier 1 Employee Medicare tax,
1 tax deferral should be treated like an underreported tax
Tier 1 Employee Additional Medicare Tax, and Tier 2
amount. For more information, including which process to
Employee tax;
select on lines 1 and 2, see Correcting an employment tax
• Tier 1 Employer tax, Tier 1 Employer Medicare tax, and
credit or Tier 1 tax deferral, later.
Tier 2 Employer tax;
• Deferred amount of the Tier 1 Employer tax;
• Deferred amount of the Tier 1 Employee tax; Report the correction of underreported and
• Amounts reported on Form CT-1 for the credit for overreported tax amounts for the same tax period on a
qualified sick and family leave compensation for leave single Form CT-1 X, unless you’re requesting a refund or
taken after March 31, 2020, and before April 1, 2021, abatement. If you’re requesting a refund or abatement and
including adjustments to Form CT-1, lines 16, 23, 30, 31, are correcting both underreported and overreported tax
32, and 33; amounts, file one Form CT-1 X correcting the
• Amounts reported on Form CT-1 for the credit for underreported tax amounts only and a second Form CT-1
qualified sick and family leave compensation for leave X correcting the overreported tax amounts.
taken after March 31, 2021, and before October 1, 2021, You’ll use the adjustment process if you underreported
including adjustments to Form CT-1, lines 17b, 24b, 36, RRTA taxes and are making a payment, or if you
37, 38, 39, 40, and 41; overreported RRTA taxes and will be applying the credit to
• Amounts reported on Form CT-1 for the employee Form CT-1 for the period during which you file Form CT-1
retention credit, including adjustments to Form CT-1, lines X. However, see the Caution under Is There a Deadline for
17 (2020) or 17a (2021), 24 (2020) or 24a (2021), 34, 35, Filing Form CT-1 X, later, if you’re correcting overreported
42, and 43; and tax amounts during the last 90 days of a period of
• Amounts reported on Form CT-1 for the COBRA limitations. You’ll use the claim process if you overreported
premium assistance credit, for periods of coverage RRTA taxes and are requesting a refund or abatement of
beginning on or after April 1, 2021, through periods of the overreported tax amount. Follow the chart on page 6
coverage beginning on or before September 30, 2021, of Form CT-1 X for help in choosing whether to use the
including adjustments to Form CT-1, lines 17c, 17d, and adjustment process or the claim process. Be sure to
24c. provide a detailed explanation on line 43 for each
Use Form 843, Claim for Refund and Request for correction that you show on Form CT-1 X.
Abatement, to request a refund or abatement of assessed Continue to report current year adjustments on Form
interest or penalties. Don’t request a refund or abatement CT-1, line 14.
of assessed interest or penalties on Form CT-1 or Form
CT-1 X. You have additional requirements to complete when
We use the terms “correct” and “corrections” on filing Form CT-1 X, such as certifying that you filed (or will
TIP Form CT-1 X and in these instructions to include file) all applicable Forms W-2, Wage and Tax Statements,
interest-free adjustments under sections 6205 and and Forms W-2c, Corrected Wage and Tax Statements,
6413 and claims for refund and abatement under sections with the Social Security Administration (SSA). For
6402, 6414, and 6404. See Rev. Rul. 2009-39 for corrections of overreported Tier 1 and Tier 2 taxes, you
examples of how the interest-free adjustment and claim must make any certifications that apply to your situation.
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

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Don’t use Form CT-1 X to correct Form 941, About Penalties and Interest, later. For details on how to
! 941-SS, 943, 944, or 945. Instead, use the "X" make a payment, see the instructions for line 26, later.
CAUTION form that corresponds to those forms (Form
If Form CT-1 X is filed late (after the due date of the
941-X, 943-X, 944-X, or 945-X). return for the return period in which you discovered the
error), you must attach an amended Form 945-A to Form
Where Can You Get Help? CT-1 X. Otherwise, the IRS may assess an “averaged”
FTD penalty. See “Averaged” FTD penalty in section 11 of
For help filing Form CT-1 X or for questions about RRTA Pub. 15 for more information about “averaged” FTD
taxes and tax corrections, you can: penalties. The total tax reported on Form 945-A, line M,
• Go to IRS.gov/EmploymentTaxes and IRS.gov/ must match the corrected total tax (Form CT-1, line 19
CorrectingEmploymentTaxes; (line 15 for years before 2020), combined with any
• See Pub. 15, Employer's Tax Guide; or correction reported on Form CT-1 X, line 21) for the year,
• Call the IRS Business and Specialty Tax Line toll free at less any previous abatements and interest-free tax
800-829-4933 or 800-829-4059 (TDD/TTY for persons assessments.
who are deaf, hard of hearing, or have a speech
disability), Monday–Friday from 7:00 a.m. to 7:00 p.m. Example—You owe tax. On March 8, 2024, you
local time (Alaska and Hawaii follow Pacific time). discovered that you underreported $1,000 of RRTA
compensation on your 2023 Form CT-1. File Form CT-1 X
See also How Can You Get Forms, Instructions, and and pay the amount you owe by February 28, 2025,
Publications From the IRS, later. because you discovered the error in 2024, and February
28, 2025, is the due date for that year. If you file Form
When Should You File Form CT-1 X? CT-1 X before February 28, 2025, pay the amount you
File Form CT-1 X when you discover an error on a owe by the time you file.
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 CAUTION! Additional Medicare Tax unless the amounts were
RRTA tax liabilities reported in Part II of Form CT-1 or on withheld from employee compensation.
Form 945-A, Annual Record of Federal Tax Liability, don’t
file Form CT-1 X. To correct federal tax liabilities reported Overreported tax—Adjustment process. If you
in Part II of Form CT-1, file Form 945-A, but only enter the overreported tax and choose to apply the credit to Form
monthly totals. The daily entries aren’t required. For more CT-1, file an adjusted return on Form CT-1 X as soon as
information about correcting RRTA tax liabilities reported possible after you discover the error but more than 90
on Form 945-A, see the Form 945-A instructions. days before the period of limitations on the credit or refund
Due dates. The due date for filing Form CT-1 X depends for Form CT-1 expires. See Is There a Deadline for Filing
on when you discover an error and if you underreported or Form CT-1 X, later.
overreported tax. If you underreported tax, see Form CT-1 X can’t be used to correct overreported
Underreported tax, later. For overreported tax amounts, ! amounts of Tier 1 Employee Additional Medicare
you may choose to either make an interest-free CAUTION Tax unless the amounts weren’t withheld from
adjustment or file a claim for refund or abatement. If you’re employee compensation.
correcting overreported tax amounts, see Overreported
tax—adjustment process or Overreported tax—claim Example—You want your credit applied to Form
process, later. CT-1. You filed your 2023 Form CT-1 on February 23,
If any due date falls on a Saturday, Sunday, or legal 2024, and payments were timely made. On May 3, 2024,
holiday, you may file Form CT-1 X on the next business you discover that you overreported tax on your 2023 Form
day. The term “legal holiday” means any legal holiday in CT-1. You file Form CT-1 X on June 3, 2024, and check
the District of Columbia. See Pub. 15 for the list of legal the box on line 1 to indicate you want to use the
holidays. If we receive Form CT-1 X after the due date, we adjustment process. The IRS treats your credit as a tax
will treat Form CT-1 X as filed on time if the envelope deposit made on January 1, 2024. When you file your
containing Form CT-1 X is properly addressed, contains 2024 Form CT-1, include the amount from Form CT-1 X,
sufficient postage, and is postmarked by the U.S. Postal line 26, on the “Total railroad retirement tax deposits” line
Service on or before the due date, or sent by an of your 2024 Form CT-1.
IRS-designated private delivery service (PDS) on or Overreported tax—Claim process. If you overreported
before the due date. If you don’t follow these guidelines, tax on Form CT-1, you may choose to file a claim for
we will consider Form CT-1 X filed when it is actually refund or abatement on Form CT-1 X any time before the
received. For more information about PDSs, see Where period of limitations on credit or refund expires on Form
Should You File Form CT-1 X, later. CT-1. If you also need to correct any underreported tax
Underreported tax. If you’re correcting underreported amounts, you must file another Form CT-1 X reporting
tax, you must file Form CT-1 X by the due date of the only corrections to the underreported tax amounts. See Is
return for the return period in which you discovered the There a Deadline for Filing Form CT-1 X, later.
error and pay the amount you owe by the time you file. You may not file a refund claim to correct Tier 1
Filing and paying on time generally will ensure that your ! Employee Additional Medicare Tax actually
correction is interest free and not subject to failure-to-pay CAUTION withheld from employees.
(FTP) or failure-to-deposit (FTD) penalties. See What

4 Instructions for Form CT-1 X (Rev. 3-2024)

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Is There a Deadline for Filing Form correct the 2022 Form CT-1. File a second Form CT-1 X to
correct the 2023 Form CT-1.
CT-1 X?
Employer Identification Number (EIN), RRB
Generally, you may correct overreported taxes on a Number, Name, and Address
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 Enter your EIN, RRB number, name, and address in the
date you paid the tax reported on Form CT-1, whichever is spaces provided. Also enter your name and EIN on the
later. You may correct underreported taxes on a previously top of pages 2, 3, 4, and 5, and on any attachments. If
filed Form CT-1 if you file Form CT-1 X within 3 years of your address has changed since you filed your Form
the date the Form CT-1 was filed. We call each of these CT-1, enter the corrected information and the IRS will
time frames a “period of limitations.” For purposes of the update your address of record. Be sure to write your
period of limitations, Form CT-1 is considered filed on the name, EIN, “Form CT-1 X,” and the calendar year you’re
last day in February of the succeeding year if filed before correcting on the top of any attachments.

that date. Return You’re Correcting
Example. You filed your 2021 Form CT-1 on January Enter the calendar year of the Form CT-1 you’re correcting
28, 2022, and payments were timely made. The IRS treats in the box at the top of page 1. Enter the same calendar
the return as if it were filed on February 28, 2022. On year on pages 2, 3, 4, and 5.
January 15, 2025, you discover that you overreported
RRTA compensation on that form by $10,000. To correct Enter the Date You Discovered Errors
the error, you must file Form CT-1 X by February 28, 2025, You must enter the date you discovered errors. You
which is the end of the period of limitations, and use the discover an error when you have enough information to be
claim process. able to correct it. If you’re reporting several errors that you
If you file Form CT-1 X to correct overreported tax discovered at different times, enter the earliest date you
discovered an error here. Report any subsequent dates
! amounts in the last 90 days of a period of
CAUTION limitations, you must use the claim process. You and related errors on line 43.
can’t use the adjustment process. If you are also
correcting underreported tax amounts, you must file Must You Make an Entry on Each Line?
another Form CT-1 X to correct the underreported tax You must provide all of the information requested at the
amounts using the adjustment process and pay any tax top of page 1 of Form CT-1 X. You must check one box
due. (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
Where Should You File Form CT-1 X? Part 3, if any line doesn’t apply, leave it blank. Complete
Parts 4 and 5 as instructed.
Send your completed Form CT-1 X to:
How Should You Report Negative Amounts?
Department of the Treasury Form CT-1 X uses negative numbers to show reductions
Internal Revenue Service Center in tax (credits) and positive numbers to show additional
Cincinnati, OH 45999-0007 tax (amounts you owe).
PDSs can’t deliver to P.O. boxes. You must use the U.S. When reporting a negative amount in columns 3 and 4,
Postal Service (USPS) to mail an item to a P.O. box use a minus sign instead of parentheses. For example,
address. Go to IRS.gov/PDS for the current list of PDSs. If enter “-10.59” instead of “(10.59).” However, if you’re
you file Form CT-1 X using a PDS, send it to the following completing the return on your computer and your software
address. only allows you to use parentheses to report negative
amounts, you may use them.
Ogden-Internal Revenue Submission Processing
Center How Should You Make Entries on Form CT-1 X?
1973 Rulon White Blvd. You can help the IRS process Form CT-1 X timely and
Ogden, UT 84201 accurately if you follow these guidelines.
• Type or print your entries.
Use this address even though Form CT-1 X mailed by the • Use Courier font (if possible) for all typed or
USPS goes to Cincinnati. computer-generated entries.
• Omit dollar signs. You may use commas and decimal
How Should You Complete Form CT-1 points, if desired. Enter dollar amounts to the left of any
X? preprinted decimal point and cents to the right of it.
• Always show an amount for cents, even if it is zero.
Use a Separate Form CT-1 X for Each Year You’re Don’t round entries to whole dollars.
Correcting • Complete all five pages and sign Form CT-1 X on
page 5.
Use a separate Form CT-1 X for each Form CT-1 that • Staple multiple sheets in the upper-left corner.
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

Instructions for Form CT-1 X (Rev. 3-2024) 5

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What About Penalties and Interest? ensure that the IRS will have enough time to process the
Generally, your correction of an underreported tax amount Form CT-1 X so that the credit will be posted before you
won’t be subject to an FTP penalty, an FTD penalty, or file Form CT-1, thus avoiding an erroneous balance due
interest if you: notice from the IRS. See the example next.
• File on time (by the due date of the year in which you
Example—You want your overreported tax applied
discover the error),
as a credit on Form CT-1. On December 19, 2024, you
• Pay the amount shown on line 26 by the time you file
discover you overreported your tax on your 2023 Form
Form CT-1 X,
CT-1 and want to choose the adjustment process. To
• Enter the date you discovered the error, and
allow the IRS enough time to process the credit, you file
• Explain in detail the grounds and facts relied on to
Form CT-1 X on March 10, 2025, and take the credit on
support the correction.
your 2025 Form CT-1.
No correction will be eligible for interest-free treatment
if any of the following apply.
• The underreported amounts relate to an issue that was Specific Instructions
raised in an examination of a prior period.
Part 1: Select ONLY One Process
• You knowingly underreported your employment tax
liability. Because Form CT-1 X may be used to file either an
• You received a notice and demand for payment. adjusted railroad retirement tax return or a claim for refund
• You received a notice of determination under section or abatement, you must check one box on either line 1 or
7436. line 2. Don’t check both boxes.
If you receive a notice about a penalty after you file this Correcting an employment tax credit or Tier 1 tax de-
return, reply to the notice with an explanation and we will ferral. For boxes 1 and 2, if you underreported an
determine if you meet reasonable-cause criteria. Don’t employment tax credit or Tier 1 tax deferral, treat it like you
attach an explanation when you file your return. overreported a tax amount. If you overreported an
employment tax credit or Tier 1 tax deferral, treat it like you
Overview of the Process underreported a tax amount. If you're filing Form CT-1 X to
To correct a previously filed Form CT-1, use Form CT-1 X adjust only an employment tax credit and/or Tier 1 tax
to file either an adjusted railroad retirement tax return or a deferral and you're not correcting any overreported taxes
claim for refund or abatement. The adjustment process on Form CT-1 X, lines 6–17, skip lines 4 and 5.
and the claim process are outlined below.
1. Adjusted Railroad Retirement Tax Return
If you underreported the tax. If you underreported
the tax on a previously filed Form CT-1, check the box on Check the box on line 1 if you’re correcting underreported
line 1 and pay any additional amount you owe by the tax amounts or overreported tax amounts and you would
time you file Form CT-1 X. For details on how to make a like to use the adjustment process to correct the errors.
payment, see the instructions for line 26, later. If you’re correcting both underreported tax amounts
Example—You underreported RRTA taxes. On June and overreported tax amounts on this form, you must
21, 2024, you discovered an error that results in additional check this box. If you check this box, any negative amount
tax on your 2023 Form CT-1. File Form CT-1 X by shown on line 26 will be applied as a credit (tax deposit) to
February 28, 2025, and pay the amount you owe by the your Form CT-1 for the year in which you’re filing this form.
time you file. See When Should You File Form CT-1 X, See Example—You want your overreported tax applied as
earlier. Don’t attach Form CT-1 X to your 2024 Form CT-1. a credit on Form CT-1, earlier.
If you overreported the tax. If you overreported the Form CT-1 X can’t be used to correct overreported
tax on a previously filed Form CT-1, choose one of the ! amounts of Tier 1 Employee Additional Medicare
following options. 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
• Use the claim process. Check the box on line 2 to file a time you file Form CT-1 X. Generally, you won’t be
claim on Form CT-1 X requesting a refund or abatement of charged interest if you file on time, pay on time, enter the
the amount shown on line 26. date you discovered the error, and explain the correction
on line 43.
To ensure that the IRS has enough time to
TIP process a credit for an overreporting tax If you have a credit. You overreported RRTA taxes (you
adjustment in the year during which you file Form have a negative amount on line 26) and want the IRS to
CT-1 X, you’re encouraged to file Form CT-1 X correcting apply the credit to Form CT-1 for the period during which
the overreported tax amount in the first 11 months of a you filed Form CT-1 X. The IRS will apply your credit on
year. For example, if you discover an overreported tax the first day of the Form CT-1 year during which you filed
amount in December, you may want to file Form CT-1 X in Form CT-1 X. However, the credit you show on Form CT-1
the first 11 months of the next year. However, there must X, line 26, may not be fully available on your Form CT-1 if
be 90 days remaining on the period of limitations when the IRS corrects it during processing or you owe other
you file Form CT-1 X. See the Caution under Is There a taxes, penalties, or interest. The IRS will notify you if your
Deadline for Filing Form CT-1 X, earlier. This should claimed credit changes or if the amount available as a

6 Instructions for Form CT-1 X (Rev. 3-2024)

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credit on Form CT-1 was reduced because of unpaid showing your employees' correct wage and tax amounts.
taxes, penalties, or interest. 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
CAUTION limitations on credit or refund for Form CT-1 will Forms W-2 or Forms W-2c even if your corrections on
expire within 90 days of the date you file Form CT-1 X. Form CT-1 X don’t change amounts shown on those
Instead, check the box on line 2. See Is There a Deadline forms. For example, if your only correction to Form CT-1
for Filing Form CT-1 X, earlier. involves misstated tax adjustments, which don’t change
the amounts reported on your employee’s Form W-2 (see
2. Claim the instructions for line 18, later), check the box on line 3
Check the box on line 2 to use the claim process if you’re to certify that you already filed all required Forms W-2 and
correcting overreported tax amounts only and you’re W-2c with the SSA. In this situation, you’re certifying that
claiming a refund or abatement for the negative amount you don’t need to file Form W-2c because you already
(credit) shown on line 26. Don’t check this box if you’re filed a correct Form W-2.

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 If you overreported RRTA tax and/or Tier 1 Employee
negative amount on line 26) and the period of limitations Additional Medicare Tax and checked the box on line 1,
on credit or refund for Form CT-1 will expire within 90 days check the appropriate box on line 4. You may need to
of the date you file Form CT-1 X. See Is There a Deadline check more than one box. If you obtained written
for Filing Form CT-1 X, earlier. statements from some employees but you couldn’t locate
The IRS usually processes claims shortly after they are employees or secure the statements of the remaining
filed. The IRS will notify you if your claim is denied, employees, check all applicable boxes. Provide a
accepted as filed, or selected to be examined. See Pub. summary on line 43 of the amount of the corrections for
556, Examination of Returns, Appeal Rights, and Claims both the employees who provided written statements and
for Refund, for more information. for those who didn’t.
Unless the IRS corrects Form CT-1 X during You may not use Form CT-1 X to correct
processing or you owe other taxes, penalties, or interest, ! overreported amounts of Tier 1 Employee
the IRS will refund the amount shown on line 26, plus any CAUTION Additional Medicare Tax unless the amounts
interest that applies. 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
! Employee Additional Medicare Tax actually includes each affected employee share of overcollected
CAUTION withheld from employees.
Employee RRTA taxes. You’re certifying that you repaid or
reimbursed the prior year Employee RRTA taxes and you
Part 2: Complete the Certifications received written statements from the employees stating
You must complete all certifications that apply by checking that they didn’t and won’t receive a refund or credit for the
the appropriate boxes. If all of your corrections relate to prior year taxes. Don’t send these statements to the IRS.
underreported tax amounts, complete line 3 only; skip Keep them for your records. Generally, all employment tax
lines 4 and 5 and go to Part 3. records must be kept for at least 4 years. Records related
to qualified sick leave compensation and qualified family
If your corrections relate to overreported tax amounts, leave compensation for leave taken after March 31, 2021,
other than corrections related to underreported and before October 1, 2021, and records related to
employment tax credits and Tier 1 tax deferrals, you have qualified compensation for the employee retention credit
a duty to ensure that your employees' rights to recover paid after June 30, 2021, should be kept for at least 6
overpaid Employee RRTA taxes that you withheld are years. Copies must be submitted to the IRS if requested.
protected. The certifications on lines 4 and 5 address the
requirement to: 4b. Check the box on line 4b to certify that your
overreported amount is only for Employer RRTA taxes on
• Repay or reimburse your employees for the
those employees whom you were unable to find or those
overcollection of Employee RRTA taxes, or
who didn’t give you a statement described on line 4a.
• Obtain consents from your employees to file a claim on
their behalf. See Rev. Proc. 2017-28 for guidance on the 4c. Check the box on line 4c to certify that your
requirements for both a request for employee consent and overreported amount is only for RRTA taxes and/or Tier 1
for the employee consent. Employee Additional Medicare Tax that you didn’t withhold
For purposes of these certifications, Employee RRTA from your employees.
taxes consist of Tier 1 Employee tax, Tier 1 Employee
Medicare tax, and Tier 2 Employee tax. Employer RRTA 5. Certifying Claims
taxes consist of Tier 1 Employer tax, Tier 1 Employer If you’re filing a claim for refund or abatement of
Medicare tax, and Tier 2 Employer tax. overreported RRTA tax and/or Tier 1 Employee Additional
Medicare Tax and checked the box on line 2, check the
3. Filing Forms W-2 or Forms W-2c appropriate box on line 5. You may need to check more
Check the box on line 3 to certify that you filed or will file than one box. If you obtained written statements or
Forms W-2 or Forms W-2c with the SSA, as required, consents from some employees but you couldn’t locate

Instructions for Form CT-1 X (Rev. 3-2024) 7

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employees or secure the statements of the remaining leave compensation for leave taken after March 31, 2021,
employees, check all applicable boxes. Provide a and before October 1, 2021, and records related to
summary on line 43 of the amount of the corrections for qualified compensation for the employee retention credit
the employees who provided statements or consents and paid after June 30, 2021, should be kept for at least 6
those who didn’t. years. Copies must be submitted to the IRS if requested.
You may not file a refund claim to correct Tier 1 In certain situations, you may not have repaid or
reimbursed your employees or obtained their consents
CAUTION withheld from employees. If you request their
! Employee Additional Medicare Tax actually prior to filing a claim, such as in cases where the period of
consent to file a claim for employee RRTA taxes you must limitations on credit or refund is about to expire. In those
tell your employees that you can’t claim a refund of any situations, file Form CT-1 X but don’t check a box on
Tier 1 Employee Additional Medicare Tax on their behalf. line 5. Tell us on line 43 that you haven’t repaid or
See Rev. Proc. 2017-28 for sample language to use in reimbursed employees or obtained consents at the time
your request. you file the claim. However, you must repay or reimburse
your employees and certify that you have done so before
5a. Check the box on line 5a if your overreported tax the IRS can allow the claim.
includes overcollected Employee RRTA taxes for each 5c. Check the box on line 5c to certify that your
affected employee. You’re certifying that you repaid or overreported tax is only for the Employer RRTA taxes. This
reimbursed to the employees their share of the prior year applies when affected employees didn’t give you consent
Employee RRTA taxes and you received written to file a claim for refund for the Employee RRTA taxes,
statements from those employees stating that they didn’t they couldn’t be found, or they didn’t give you a statement
and won’t receive a refund or credit for the prior year described on line 5b.
taxes. Don’t send these statements to the IRS. Keep them
for you records. Generally, all employment tax records 5d. Check the box on line 5d to certify that your
must be kept for at least 4 years. Records related to overreported amount is only for RRTA taxes and/or Tier 1
qualified sick leave compensation and qualified family Employee Additional Medicare Tax that you didn’t withhold
leave compensation for leave taken after March 31, 2021, from your employees.
and before October 1, 2021, and records related to
qualified compensation for the employee retention credit Part 3: Enter the Corrections for the
paid after June 30, 2021, should be kept for at least 6 Calendar Year You’re Correcting
years. Copies must be submitted to the IRS if requested.
5b. Check the box on line 5b if your overreported tax What Amounts Should You Report in Part 3?
includes overcollected prior year Employee RRTA taxes On lines 6–17, columns 1 and 2, show amounts for all of
for each affected employee and you haven’t yet repaid or your employees, not just for those employees whose
reimbursed the Employee RRTA taxes. You’re certifying amounts you’re correcting.
that you received consent from each affected employee to If a correction that you report in column 4 includes both
file a claim on the employee share of those taxes and you underreported and overreported amounts (see the
received written statements from those employees stating instructions for line 41, later), provide details for each error
that they didn’t and won’t receive a refund or credit for the on line 43.
prior year taxes.
An employee consent must: Because special circumstances apply for lines 18–20d,
• Contain the name, address, and social security number 22–25c, and 27–40, read the instructions for each line
(or truncated taxpayer identification number, when carefully before entering amounts in the columns.
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
amount of tax for which the consent is provided; ! using Form CT-1 X, or because of an IRS
• Affirmatively state that the employee authorizes the CAUTION examination change, show amounts in column 2
employer to claim a refund for the overpayment of the that include those previously reported corrections.
employee share of tax;
• Include the employee's written statement certifying that 6. Tier 1 Employer Tax—Compensation
the employee hasn't made any previous claims (or the For purposes of these instructions, all references
claims were rejected) and won't make any future claims for TIP to “sick pay” mean ordinary sick pay, not “qualified
refund or credit of the amount of the overcollection; sick leave compensation.”
• Identify the basis of the claim; and
• Be dated and contain the employee's signature under If you’re correcting the compensation (other than tips
penalties of perjury. The penalties of perjury statement and sick pay) for the Tier 1 Employer tax you reported on
should be located immediately above the required Form CT-1, line 1, enter the total corrected amount for all
signature. employees in column 1. In column 2, enter the amount you
originally reported or as previously corrected. In column 3,
Don’t send these statements and consents to the IRS.
enter the difference between columns 1 and 2. If you (or
Keep them for your records. Generally, all employment tax
the IRS) previously corrected the amount reported on
records must be kept for at least 4 years. Records related
Form CT-1, line 1, enter in column 2 the amount after any
to qualified sick leave compensation and qualified family
previous corrections.

8 Instructions for Form CT-1 X (Rev. 3-2024)

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line 6 (column 1) line 7 (column 3)
- line 6 (column 2) x 0.0145
line 6 (column 3) If the amount in column 2 is larger than line 7 (column 4) If the amount in column 3 used a minus sign,
the amount in column 1, use a minus also use a minus sign in column 4.
sign in column 3.

Example—Tier 1 Employer Medicare
Multiply the amount in column 3 by 0.062 (6.2% tax compensation decreased. Following Example—Tier 1
rate) and enter the result in column 4. Employer compensation decreased in the instructions for
line 6, the compensation that you counted twice was also
line 6 (column 3) Tier 1 Employer Medicare compensation. To correct the
x 0.062 error, figure the difference on Form CT-1 X as shown.
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) 7,000.00
Column 2 (Form CT-1, line 2) - 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 Use the difference in column 3 to determine your tax
Form CT-1. In December 2024, you discovered that you correction.
included $2,000 in compensation for one of your
employees twice. To correct the error, figure the difference Column 3 (difference) -2,000.00
on Form CT-1 X as shown. Tax rate (1.45%) x 0.0145
Column 4 (tax correction) -29.00
Column 1 (corrected amount) 7,000.00
Column 2 (Form CT-1, line 1) - 9,000.00
Column 3 (difference) -2,000.00 Be sure to explain the reasons for this correction on
line 43.

Use the difference in column 3 to determine your tax 8. Tier 2 Employer Tax—Compensation
correction. If you’re correcting the compensation (other than tips) for
the Tier 2 Employer tax you reported on Form CT-1, line 3,
Column 3 (difference) -2,000.00 enter the total corrected amount in column 1. In column 2,
Tax rate (6.2%) x 0.062 enter the amount you originally reported or as previously
Column 4 (tax correction) -124.00 corrected. In column 3, enter the difference between
columns 1 and 2.

Be sure to explain the reasons for this correction on line 8 (column 1)
line 43. - line 8 (column 2)
line 8 (column 3) If the amount in column 2 is larger
7. Tier 1 Employer Medicare than the amount in column 1, use a
Tax—Compensation minus sign in column 3.
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 Multiply the amount in column 3 by the rate stated on
amount in column 1. In column 2, enter the amount you line 3 of the Form CT-1 for the year that you’re
originally reported or as previously corrected. In column 3, correcting and enter the result in column 4. If the amount
enter the difference between columns 1 and 2. in column 3 used a minus sign, also use a minus sign in
column 4.
line 7 (column 1) Example—Tier 2 Employer compensation
- line 7 (column 2) decreased. Following Example—Tier 1 Employer
line 7 (column 3) If the amount in column 2 is larger compensation decreased in the instructions for line 6, the
than the amount in column 1, use a compensation that you counted twice was also Tier 2
minus sign in column 3. 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
Multiply the amount in column 3 by 0.0145 (1.45% tax the difference on Form CT-1 X as shown.
rate) and enter the result in column 4.

Instructions for Form CT-1 X (Rev. 3-2024) 9

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Column 1 (corrected amount) 7,000.00 Multiply the amount in column 3 by 0.0145 (1.45% tax
Column 2 (Form CT-1, line 3) - 9,000.00 rate) and enter the result in column 4.
Column 3 (difference) -2,000.00
line 10 (column 3)
x 0.0145
Use the difference in column 3 to determine your tax line 10 (column 4) If the amount in column 3 used a minus sign,
correction. also use a minus sign in column 4.

Column 3 (difference) -2,000.00
Tax rate (13.1%) x 0.131 Be sure to explain the reasons for this correction on
Column 4 (tax correction) -262.00 line 43.

11. Tier 1 Employee Additional Medicare
Be sure to explain the reasons for this correction on Tax—Compensation (Other Than Sick Pay)
line 43. You may use Form CT-1 X to correct errors to Tier 1
Employee Additional Medicare Tax withholding for prior
9. Tier 1 Employee Tax—Compensation years if the amount reported on Form CT-1, line 6, isn’t the
If you’re correcting the compensation, including tips amount you actually withheld. This type of error is an
reported, but excluding sick pay, for the Tier 1 Employee administrative error. The administrative error adjustment
tax you reported on Form CT-1, line 4, enter the total corrects the amount reported on Form CT-1 to agree with
corrected amount in column 1. In column 2, enter the the amount actually withheld from employees.
amount you originally reported or as previously corrected. If a prior year error was a nonadministrative error, you
In column 3, enter the difference between columns 1 and may correct only the compensation subject to Tier 1
2. Employee Additional Medicare Tax withholding that was
originally reported on Form CT-1, line 6, or previously
line 9 (column 1) corrected on Form CT-1 X. You can’t correct the tax
- line 9 (column 2) reported on Form CT-1, line 6.
line 9 (column 3) If the amount in column 2 is larger than Prior year administrative error. If you’re correcting the
the amount in column 1, use a minus
sign in column 3. 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
Multiply the amount in column 3 by 0.062 (6.2% tax previously corrected. In column 3, enter the difference
rate) and report the result in column 4. between columns 1 and 2.

line 9 (column 3) line 11 (column 1)
x 0.062 - line 11 (column 2)
line 9 (column 4) If the amount in column 3 used a minus sign, line 11 (column 3) If the amount in column 2 is larger
also use a minus sign in column 4. 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
10. Tier 1 Employee Medicare rate) and enter the result in column 4.
Tax—Compensation
If you’re correcting the compensation, including tips line 11 (column 3)
reported, but excluding sick pay, for the Tier 1 Employee x 0.009
Medicare tax you reported on Form CT-1, line 5, enter the line 11 (column 4) If the amount in column 3 used a minus sign,
total corrected amount in column 1. In column 2, enter the also use a minus sign in column 4.
amount you originally reported or as previously corrected.
In column 3, enter the difference between columns 1 and
2. Example—Prior year administrative error
(incorrectly reported amount of Tier 1 Employee
line 10 (column 1) Additional Medicare Tax actually withheld). Nathan
- line 10 (column 2) Smith's compensation exceeded the $200,000
line 10 (column 3) If the amount in column 2 is larger withholding threshold for Tier 1 Employee Additional
than the amount in column 1, use a Medicare Tax in November 2023. The total compensation
minus sign in column 3. 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

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Additional Medicare Tax withheld of $27 on line 6 (Tax Combination of prior year administrative and nonad-
column). You discover the error on March 15, 2024. This is ministrative errors. If you’re reporting both
an example of an administrative error that may be administrative errors and nonadministrative errors for the
corrected in a later calendar year because the amount same prior year, enter the total corrected amount in
actually withheld differs from the amount reported on your column 1. In column 2, enter the amount you originally
2023 Form CT-1. Use Form CT-1 X, line 11, to correct the reported or as previously corrected. In column 3, enter the
error as shown below. difference between columns 1 and 2. However, multiply
only the amount of compensation reported in column 3
Column 1 (corrected amount) 30,000.00 that is related to administrative errors by 0.009 (0.9% tax
Column 2 (Form CT-1, line 6 - 3,000.00 rate). Don’t multiply any compensation reported in column
(Compensation column)) 3 that was related to nonadministrative errors by 0.009
Column 3 (difference) 27,000.00 (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
Use the difference in column 3 to determine your tax in column 3 into the amounts related to administrative
correction. errors and nonadministrative errors.
Example—Combination of prior year
Column 3 (difference) 27,000.00
administrative and nonadministrative errors. Nathan
Tax rate (0.9%) x 0.009
Smith's compensation exceeded the $200,000
Column 4 (tax correction) 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
Be sure to explain the reasons for this correction on ($30,000 x 0.009) from Nathan's compensation. However,
line 43. on your 2023 Form CT-1, you mistakenly reported $3,000
Prior year nonadministrative errors. You may correct on line 6 (Compensation column), and Tier 1 Employee
only the compensation subject to Tier 1 Employee Additional Medicare Tax withheld of $27 on line 6 (Tax
Additional Medicare Tax withholding that you reported on column). The difference in compensation subject to Tier 1
Form CT-1, line 6 (Compensation column). Enter the total Employee Additional Medicare Tax related to this
corrected amount in column 1. In column 2, enter the administrative error is $27,000 ($30,000 - $3,000).
amount you originally reported or as previously corrected. Leah Green's compensation exceeded the $200,000
In column 3, enter the difference between columns 1 and withholding threshold for Tier 1 Employee Additional
2. Medicare Tax in December 2023. The total compensation
paid to Leah for 2023 was $220,000. You were required to
line 11 (column 1) withhold $180 ($20,000 x 0.009) but you withheld nothing
- line 11 (column 2) and didn’t report Leah's $20,000 in compensation subject
line 11 (column 3) If the amount in column 2 is larger to Tier 1 Employee Additional Medicare Tax withholding
than the amount in column 1, use a on line 6 of your 2023 Form CT-1.
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) 50,000.00
Don’t multiply the amount in column 3 by 0.009 (0.9% Column 2 (Form CT-1, line 6 - 3,000.00
tax rate). Leave column 4 blank and explain the reasons (Compensation column))
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
compensation exceeded the $200,000 withholding column 3 that is related to the administrative error
threshold for Tier 1 Employee Additional Medicare Tax in ($47,000 - $20,000 (nonadministrative error) = $27,000
December 2023. The total compensation paid to Leah for (administrative error)). Multiply this portion of column 3 by
2023 was $220,000. You were required to withhold $180 0.009 (0.9% tax rate) to determine your tax correction.
($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 Difference related to administrative error 27,000.00
discover the error on March 15, 2024. File Form CT-1 X to Tax rate (0.9%) x 0.009
correct the compensation subject to Tier 1 Employee Column 4 (tax correction) 243.00
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 Be sure to explain the reasons for these corrections on
error involves a previous year and the amount previously line 43. You must also report that $20,000 of the amount
reported for the employee represents the actual amount shown in column 3 was related to the correction of a prior
withheld from the employee during 2023. year nonadministrative error and $27,000 of the amount

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shown in column 3 was related to the correction of an line 13 (column 1)
administrative error. - line 13 (column 2)
12. Tier 2 Employee Tax—Compensation line 13 (column 3) If the amount in column 2 is larger
than the amount in column 1, use a
If you’re correcting the compensation, including tips minus sign in column 3.
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 Multiply the amount in column 3 by 0.062 (6.2% tax
reported or as previously corrected. In column 3, enter the rate) and enter the result in column 4.
difference between columns 1 and 2.
line 13 (column 3)
line 12 (column 1) x 0.062
- line 12 (column 2)
line 13 (column 4) If the amount in column 3 used a minus sign,
line 12 (column 3) If the amount in column 2 is larger also use a minus sign in column 4.
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
Multiply the amount in column 3 by the rate stated on the tax on line 8 of your 2023 Form CT-1. In December
line 7 of the Form CT-1 for the year that you’re 2024, you discover that you overlooked $1,000 in sick pay
correcting and enter the result in column 4. If the amount for one of your employees. To correct the error, figure the
in column 3 used a minus sign, also use a minus sign in difference on Form CT-1 X as shown.
column 4.
Example—Tier 2 Employee compensation Column 1 (corrected amount) 9,000.00
decreased. Following Example—Tier 1 Employer Column 2 (Form CT-1, line 8) - 8,000.00
compensation decreased in the instructions for line 6, the Column 3 (difference) 1,000.00
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 Use the difference in column 3 to determine your tax
(4.9%) shown on that return. To correct the error, figure correction.
the difference on Form CT-1 X as shown.
Column 3 (difference) 1,000.00
Column 1 (corrected amount) 7,000.00 Tax rate (6.2%) x 0.062
Column 2 (Form CT-1, line 7) - 9,000.00
Column 4 (tax correction) 62.00
Column 3 (difference) -2,000.00

Be sure to explain the reasons for this correction on
Use the difference in column 3 to determine your tax line 43.
correction.
14. Tier 1 Employer Medicare Tax—Sick Pay
Column 3 (difference) -2,000.00 If you’re correcting the sick pay for the Tier 1 Employer
Tax rate (4.9%) x 0.049 Medicare tax you reported on Form CT-1, line 9, enter the
Column 4 (tax correction) -98.00 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
Be sure to explain the reasons for this correction on 2.
line 43.
For purposes of these instructions, all references line 14 (column 1)
TIP to “sick pay” mean ordinary sick pay, not “qualified - line 14 (column 2)
sick leave compensation.” line 14 (column 3) 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
Multiply the amount in column 3 by 0.0145 (1.45% tax
corrected amount in column 1. In column 2, enter the
rate) and enter the result in column 4.
amount you originally reported or as previously corrected.
In column 3, enter the difference between columns 1 and
2.

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line 14 (column 3) 17. Tier 1 Employee Additional Medicare
x 0.0145 Tax—Sick Pay
line 14 (column 4) If the amount in column 3 used a minus sign, You may use Form CT-1 X to correct errors to Tier 1
also use a minus sign in column 4. 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
Be sure to explain the reasons for this correction on administrative error.
line 43.
If a prior year error was a nonadministrative error, you
15. Tier 1 Employee Tax—Sick Pay may correct only the sick pay subject to Tier 1 Employee
Additional Medicare Tax withholding that was originally
If you’re correcting the sick pay for the Tier 1 Employee tax
reported on Form CT-1, line 12, or previously corrected on
you reported on Form CT-1, line 10, enter the total
Form CT-1 X. You can’t correct the tax reported on Form
corrected amount in column 1. In column 2, enter the
CT-1, line 12.
amount you originally reported or as previously corrected.
In column 3, enter the difference between columns 1 and For more information on the types of errors that can be
2. corrected on line 17, see the detailed examples in the
instructions for line 11, earlier.
line 15 (column 1)
- line 15 (column 2) 18. Tax Adjustments
line 15 (column 3) If the amount in column 2 is larger Don’t enter an amount on line 18 unless you need to
than the amount in column 1, use a correct any current year adjustments reported on Form
minus sign in column 3. 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
Multiply the amount in column 3 by 0.062 (6.2% tax CT-1 X, lines 13–17.
rate) and enter the result in column 4. Enter the corrected amount for tax adjustments in
column 1. Enter the originally reported or previously
line 15 (column 3) corrected current year amount from Form CT-1, line 14, in
x 0.062 column 2. In column 3, enter the difference between
line 15 (column 4) If the amount in column 3 used a minus sign, columns 1 and 2.
also use a minus sign in column 4.
line 18 (column 1)
- line 18 (column 2)
Be sure to explain the reasons for this correction on line 18 (column 3)
line 43.

16. Tier 1 Employee Medicare Tax—Sick Pay
If you’re correcting the sick pay for the Tier 1 Employee You may need to report negative numbers in any
Medicare tax you reported on Form CT-1, line 11, enter TIP column. Make sure that the difference you enter in
the total corrected amount in column 1. In column 2, enter column 3 accurately represents the change to
the amount you originally reported or as previously adjustments originally reported or previously corrected on
corrected. In column 3, enter the difference between Form CT-1, line 14.
columns 1 and 2.
Copy the amount in column 3 to column 4. Include any
line 16 (column 1) minus sign shown in column 3.
- line 16 (column 2)
On line 43, describe what you misreported on Form
line 16 (column 3) If the amount in column 2 is larger
than the amount in column 1, use a CT-1. Tell us which current year adjustments have
minus sign in column 3. 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
Multiply the amount in column 3 by 0.0145 (1.45% tax penalty or interest paid on tax for earlier years.
rate) and enter the result in column 4. Only use line 18 to correct adjustments for
fractions of cents; uncollected Tier 1 Employee
line 16 (column 3) CAUTION! tax, Tier 1 Employee Medicare tax, Tier 1
x 0.0145 Employee Additional Medicare Tax, and Tier 2 Employee
line 16 (column 4) If the amount in column 3 used a minus sign, tax on tips; or credits for overpayments of penalty or
also use a minus sign in column 4. interest previously reported. File a separate Form CT-1 X
for each year being corrected.

Be sure to explain the reasons for this correction on
line 43.

Instructions for Form CT-1 X (Rev. 3-2024) 13

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19. Nonrefundable Portion of Credit for Qualified Example—Nonrefundable portion of credit for
Sick and Family Leave Compensation for Leave qualified sick and family leave compensation
Taken After March 31, 2020, and Before April 1, increased. You originally reported a $1,000
nonrefundable portion of credit for qualified sick and
2021 family leave compensation on your 2021 Form CT-1,
Form CT-1 X and these instructions use the terms line 16, but later determined that you understated qualified
TIP “nonrefundable” and “refundable” when sick leave compensation eligible for the credit. You use
discussing credits. The term “nonrefundable” Worksheet 1 to refigure the correct nonrefundable portion
means the portion of the credit which is limited by law to of the credit for qualified sick and family leave
certain taxes. The term “refundable” means the portion of compensation and you determine that the correct credit is
the credit which is in excess of those taxes. 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, Column 1 (corrected amount) 2,000.00
2021, that you reported on Form CT-1, line 16, enter the Column 2 (Form CT-1, line 16) - 1,000.00
total corrected amount from Worksheet 1, Step 2, line 2j, Column 3 (difference) 1,000.00
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 To properly show the credit increase as a reduction to
about the credit for qualified sick and family leave your balance, enter the positive number in column 3 as a
compensation, go to IRS.gov/PLC. 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 Column 1 Column 2 Column 3 Column 4
in column 4 or a negative number in column 3 as a (corrected (Form CT-1, (difference) (tax correction)
amount) line 16)
positive number in column 4.
2,000.00 1,000.00 1,000.00 -1,000.00
Adjustments to the nonrefundable portion of the
TIP credit for qualified sick and family leave
compensation for leave taken after March 31, Be sure to explain the reasons for this correction on
2020, and before April 1, 2021, are reported on Form CT-1 line 43.
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
Adjustments to qualified sick leave compensation and Retention Credit
qualified family leave compensation for leave taken after
Use line 20a only for corrections to a 2020 or 2021 Form
March 31, 2020, and before April 1, 2021, are reported on
CT-1.
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 Instructions for Qualified Compensation Paid After
compensation for leave taken after March 31, 2020, and March 12, 2020, and Before July 1, 2021
before April 1, 2021, are reported on Form CT-1 X, lines
28 and 30, respectively. For corrections to 2020 Form If you’re correcting the nonrefundable portion of the
CT-1, line 16, the credit for qualified sick and family leave employee retention credit for qualified compensation paid
compensation is only available for compensation paid with after March 12, 2020, and before July 1, 2021, that you
respect to leave taken after March 31, 2020, and before reported on Form CT-1, line 17 (2020) or line 17a (2021),
January 1, 2021. For corrections to 2021, 2022, or 2023 enter the total corrected amount from Worksheet 2, Step
Form CT-1, line 16, the credit for qualified sick and family 2, line 2h, in column 1. In column 2, enter the amount you
leave compensation is only available for compensation originally reported or as previously corrected. In column 3,
paid in 2021, 2022, or 2023 with respect to any leave enter the difference between columns 1 and 2.
taken after March 31, 2020, and before April 1, 2021. If
Copy the amount in column 3 to column 4. However, to
you're correcting a year before 2020, don't enter any
properly show the amount as a credit or balance due item,
amount on line 19. If you claimed the credit for qualified
enter a positive number in column 3 as a negative number
sick and family leave compensation for leave taken after
in column 4 or a negative number in column 3 as a
March 31, 2020, and before April 1, 2021, on your original
positive number in column 4. For an example of how to
Form CT-1, and you make any corrections on Form CT-1
report amounts in columns 1–4, see the instructions for
X for the year to amounts used to figure this credit, you’ll
line 19, earlier.
need to refigure the amount of the credit using Worksheet
1. You’ll also use this worksheet to figure this credit if For more information about the employee retention
you’re claiming the credit for the first time on Form CT-1 X. credit for qualified compensation paid after March 12,
For more information about the credit for qualified sick and 2020, and before January 1, 2021, see Notice 2021-20.
family leave compensation, go to IRS.gov/PLC. See Notice 2021-23, 2021-16 I.R.B. 1113, available at
IRS.gov/irb/2021-16_IRB#NOT-2021-23, for more
information about the employee retention credit for

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qualified compensation paid after December 31, 2020, Copy the amount in column 3 to column 4. However, to
and before July 1, 2021. Also see section IV of Notice properly show the amount as a credit or balance due item,
2021-49, 2021-34 I.R.B. 316, available at IRS.gov/irb/ enter a positive number in column 3 as a negative number
2021-34_IRB#NOT-2021-49; and Rev. Proc. 2021-33. in column 4 or a negative number in column 3 as a
positive number in column 4. For an example of how to
Be sure to explain the reasons for this correction on report amounts in columns 1–4 for an employment tax
line 43. credit, see the instructions for line 19, earlier.
For corrections to a 2020 Form CT-1, the
TIP employee retention credit is only available for For more information about the employee retention
qualified compensation paid after March 12, 2020, credit for qualified compensation paid after June 30, 2021,
and before January 1, 2021. For corrections to a 2021 and before January 1, 2022, see Notice 2021-49 and Rev.
Form CT-1, the employee retention credit is only available Proc. 2021-33. See Notice 2021-65, 2021-51 I.R.B. 880,
for qualified compensation paid after December 31, 2020, available at IRS.gov/2021-51_IRB#NOT-2021-65, for
and before October 1, 2021, unless the employer was a modifications to Notice 2021-49.
recovery startup business. An employer that was a
Be sure to explain the reasons for this correction on
recovery startup business could also claim the employee
line 43.
retention credit for compensation paid after September
30, 2021, and before January 1, 2022. Adjustments to the For corrections to a 2021 Form CT-1, the
nonrefundable portion of the employee retention credit for TIP employee retention credit is only available for
qualified compensation paid after March 12, 2020, and qualified compensation paid after December 31,
before July 1, 2021, are reported on Form CT-1 X, 2020, and before October 1, 2021, unless the employer
line 20a, and adjustments to the refundable portion of the was a recovery startup business. An employer that was a
credit are reported on Form CT-1 X, line 25a. Adjustments recovery startup business could also claim the employee
to qualified compensation for the employee retention retention credit for compensation paid after September
credit are reported on Form CT-1 X, line 31. Adjustments 30, 2021, and before January 1, 2022. Adjustments to the
to qualified health plan expenses allocable to the nonrefundable portion of the employee retention credit for
employee retention credit are reported on Form CT-1 X, qualified compensation paid after June 30, 2021, and
line 32. If you claimed the employee retention credit on before January 1, 2022, are reported on Form CT-1 X,
your original 2020 Form CT-1 or your original 2021 Form line 20a, and adjustments to the refundable portion of the
CT-1 for qualified compensation paid before July 1, 2021, credit are reported on Form CT-1 X, line 25a. Adjustments
and you make any corrections on Form CT-1 X for the year to qualified compensation for the employee retention
to amounts used to figure this credit, you’ll need to refigure credit are reported on Form CT-1 X, line 31. Adjustments
the amount of the credit using Worksheet 2. You’ll also use to qualified health plan expenses allocable to the
this worksheet to figure the credit for qualified employee retention credit are reported on Form CT-1 X,
compensation paid after March 12, 2020, and before July line 32. If you claimed the employee retention credit on
1, 2021, if you’re claiming the credit for the first time on your original 2021 Form CT-1 and you make any
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
Instructions for Qualified Compensation Paid After amount of the credit using Worksheet 4. You'll also use
June 30, 2021, and Before January 1, 2022 this worksheet to figure this credit if you’re claiming the
The Infrastructure Investment and Jobs Act credit for the first time on Form CT-1 X.
! amends section 3134 of the Internal Revenue
CAUTION Code, as enacted under the ARP, to limit the 20b. Nonrefundable Portion of Credit for
availability of the employee retention credit in the fourth Qualified Sick and Family Leave Compensation
quarter of 2021 to employers that are recovery startup for Leave Taken After March 31, 2021, and
businesses, as defined in section 3134(c)(5). Thus, for
Before October 1, 2021
compensation paid after September 30, 2021, and before
January 1, 2022, only the compensation paid by recovery If you’re correcting the nonrefundable portion of the credit
startup businesses can be qualified compensation. See for qualified sick and family leave compensation for leave
the 2021 revision of the Instructions for Form CT-1 for taken after March 31, 2021, and before October 1, 2021,
more information about a recovery startup business. that you reported on Form CT-1, line 17b, enter the total
corrected amount from Worksheet 3, Step 2, line 2r, in
column 1. In column 2, enter the amount you originally
If you're correcting the nonrefundable portion of the reported or as previously corrected. In column 3, enter the
employee retention credit for qualified compensation paid difference between columns 1 and 2. For more information
after June 30, 2021, and before January 1, 2022, that you about the credit for qualified sick and family leave
reported on Form CT-1, line 17a, enter the total corrected compensation, go to IRS.gov/PLC.
amount from Worksheet 4, Step 2, line 2h, in column 1. In
column 2, enter the amount you originally reported or as For corrections to 2021, 2022 or 2023 Form CT-1,
previously corrected. In column 3, enter the difference line 17b, the credit for qualified sick and family leave
between columns 1 and 2. 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

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correcting a year before 2021, don't enter any amount on of line 18. Combine these amounts and enter “800.00” in
line 20b. 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, Line 6 -500.00
enter a positive number in column 3 as a negative number Line 7 -100.00
in column 4 or a negative number in column 3 as a Line 18 + 1,400.00
positive number in column 4. For an example of how to Line 21 800.00
report amounts in columns 1–4 for an employment tax
credit, see the instructions for line 19, earlier.
Be sure to explain the reasons for this correction on
line 43. 22. Deferred amount of the Tier 1 Employer Tax
Use Form CT-1 X, line 22, if you need to correct the
20c. Nonrefundable Portion of COBRA Premium deferred amount of the Tier 1 Employer tax that you
Assistance Credit reported on your 2020 Form CT-1, line 21. Enter the total
COBRA premium assistance was available for periods of corrected amount in column 1. In column 2, enter the
coverage beginning on or after April 1, 2021, through amount you originally reported or as previously corrected
periods of coverage beginning on or before September by you or the IRS. In column 3, enter the difference
30, 2021. For more information, see Credit for COBRA between columns 1 and 2.
premium assistance payments is limited to periods of Copy the amount in column 3 to column 4. However,
coverage beginning on or after April 1, 2021, through because an increase to the deferred amount of Tier 1
periods of coverage beginning on or before September Employer tax defers the payment due, to properly show
30, 2021 under Reminders. the amount as a deferral of payment, enter a positive
Premium payees that receive an election from an number in column 3 as a negative number in column 4. A
TIP assistance eligible individual are entitled to the decrease to the deferred amount of the Tier 1 Employer
COBRA premium assistance credit for premiums tax decreases the payment you can defer and must be
not paid during the quarter in which the election is shown as a balance due item; therefore, to properly show
received. See Notice 2021-31 for more information. the amount as a balance due item, enter a negative
number in column 3 as a positive number in column 4.
If you’re correcting the nonrefundable portion of the If you’re filing Form CT-1 X to increase the amount of
COBRA premium assistance credit that you reported on the Tier 1 Employer tax (Form CT-1 X, line 6) and Tier 1
Form CT-1, line 17c, enter the total corrected amount from Employer tax—Sick pay (Form CT-1 X, line 13) on
Worksheet 5, Step 2, line 2g, in column 1. In column 2, compensation paid on or after March 27, 2020, and before
enter the amount you originally reported or as previously January 1, 2021, so that there is an additional amount of
corrected. In column 3, enter the difference between Tier 1 Employer tax that hasn’t yet been paid, and hasn’t
columns 1 and 2. yet been deferred, then you may use Form CT-1 X to
Copy the amount in column 3 to column 4. However, to increase the amount of the deferred Tier 1 Employer tax
properly show the amount as a credit or balance due item, originally reported on Form CT-1, line 21. If you’re filing
enter a positive number in column 3 as a negative number Form CT-1 X to decrease the amount of Tier 1 Employer
in column 4 or a negative number in column 3 as a tax on compensation paid on or after March 27, 2020, and
positive number in column 4. For an example of how to before January 1, 2021, so that there is a decrease in the
report amounts in columns 1–4 for an employment tax amount of Tier 1 Employer tax that is eligible for deferral,
credit, see the instructions for line 19, earlier. then you must use Form CT-1 X to decrease the amount
Be sure to explain the reasons for this correction on of the deferred Tier 1 Employer tax originally reported on
Form CT-1, line 21, if the decrease in compensation
line 43.
causes the amount you originally deferred to exceed the
20d. Number of Individuals Provided COBRA amount that is now eligible for deferral. Otherwise, you
Premium Assistance may only correct the amount of the deferred Tier 1
Employer tax if the amount originally reported on Form
If you’re correcting the number of individuals provided CT-1, line 21, isn’t the amount you actually deferred (for
COBRA premium assistance that you reported on Form example, you incorrectly reported the amount that you
CT-1, line 17d, enter the total corrected amount in column actually deferred). If you already paid the correct amount
1. In column 2, enter the amount you originally reported or of the Tier 1 Employer tax during the payroll tax deferral
as previously corrected. In column 3, enter the difference period, you may not subsequently defer the payment by
between columns 1 and 2. filing Form CT-1 X. See IRS.gov/ETD for more information
Be sure to explain the reasons for this correction on about the interaction of credits and the deferral of
line 43. employment tax deposits and payments.
21. Subtotal The deferred amount of the Tier 1 Employer tax was
only available for deposits and payments due on or after
Combine the amounts from column 4 on lines 6–20c and March 27, 2020, and before January 1, 2021, as well as
enter the result on line 21. deposits and payments due after January 1, 2021, that
Example. You entered “-500.00” in column 4 of line 6, were required for compensation paid during the applicable
“-100.00” in column 4 of line 7, and “1,400.00” in column 4 period. Generally, 50% of the deferred amounts were

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required to be paid by December 31, 2021, and the other 24. Refundable Portion of Credit for Qualified
50% was required to be paid by December 31, 2022. Sick and Family Leave Compensation for Leave
Because both December 31, 2021, and December 31, Taken After March 31, 2020, and Before April 1,
2022, were nonbusiness days, payments made on the
next business day were considered timely. Any payments 2021
or deposits you made before December 31, 2021, were If you’re correcting the refundable portion of the credit for
first applied against your payment due on December 31, qualified sick and family leave compensation for leave
2021, and then applied against your payment due on taken after March 31, 2020, and before April 1, 2021, that
December 31, 2022. For more information about the you reported on Form CT-1, line 23, enter the total
deferral of employment tax deposits and payments, corrected amount from Worksheet 1, Step 2, line 2k, in
including when the deferral must be paid, go to IRS.gov/ column 1. In column 2, enter the amount you originally
ETD. reported or as previously corrected. In column 3, enter the
difference between columns 1 and 2. For more information
Be sure to explain the reasons for any corrections on
about the credit for qualified sick and family leave
line 43.
compensation, go to IRS.gov/PLC.
23. Deferred Amount of the Tier 1 Employee Tax For corrections to 2020 Form CT-1, line 23, the credit
Use Form CT-1 X, line 23, if you need to correct the for qualified sick and family leave compensation is only
deferred amount of the Tier 1 Employee tax that you available for compensation paid with respect to leave
reported on your 2020 Form CT-1, line 22. Enter the total taken after March 31, 2020, and before January 1, 2021.
corrected amount in column 1. In column 2, enter the For corrections to 2021, 2022, or 2023 Form CT-1, line 23,
amount you originally reported or as previously corrected the credit for qualified sick and family leave compensation
by you or the IRS. In column 3, enter the difference is only available for compensation paid in 2021, 2022, or
between columns 1 and 2. 2023 with respect to any leave taken after March 31,
Copy the amount in column 3 to column 4. However, 2020, and before April 1, 2021. If you're correcting a year
because an increase to the deferred amount of Tier 1 before 2020, don't enter any amount on line 24.
Employee tax defers the payment due, to properly show Copy the amount in column 3 to column 4. However, to
the amount as a deferral of payment, enter a positive properly show the amount as a credit or balance due item,
number in column 3 as a negative number in column 4. A enter a positive number in column 3 as a negative number
decrease to the deferred amount of the Tier 1 Employee in column 4 or a negative number in column 3 as a
tax decreases the payment you can defer and must be positive number in column 4. For an example of how to
shown as a balance due item; therefore, to properly show report amounts in columns 1–4, see the instructions for
the amount as a balance due item, enter a negative line 19, earlier.
number in column 3 as a positive number in column 4.
Be sure to explain the reasons for this correction on
You may only correct the amount of the deferred Tier 1 line 43.
Employee tax if the amount originally reported on Form
CT-1, line 22, isn’t the amount you actually deferred (for 25a. Refundable Portion of Employee Retention
example, you incorrectly reported the amount that you Credit
actually deferred). If you already paid the correct amount
of the Tier 1 Employee tax, you may not subsequently Use line 25a only for corrections to a 2020 or 2021 Form
defer the payment by filing Form CT-1 X. CT-1.
The deferred amount of the Tier 1 Employee tax was For corrections to a 2020 Form CT-1, the
only available for compensation of less than $4,000 paid TIP employee retention credit is only available for
to an employee in any biweekly pay period (or the qualified compensation paid after March 12, 2020,
equivalent threshold amount for other pay periods) paid and before January 1, 2021. For corrections to a 2021
on a pay date during the period beginning on September Form CT-1, the employee retention credit is only available
1, 2020, and ending on December 31, 2020. The due date for qualified compensation paid after December 31, 2020,
for withholding and payment of the deferred Tier 1 and before October 1, 2021, unless the employer was a
Employee tax was postponed until the period beginning recovery startup business. An employer that was a
on January 1, 2021, and ending on December 31, 2021. recovery startup business could also claim the employee
The employer was liable to pay the deferred Tier 1 retention credit for compensation paid after September
Employee tax to the IRS and was required to do so before 30, 2021, and before January 1, 2022.
January 1, 2022, to avoid interest, penalties, and additions
to tax on those amounts. Because January 1, 2022, was a Instructions for Qualified Compensation Paid After
nonbusiness day, payments made on January 3, 2022,
March 12, 2020, and Before July 1, 2021
were considered timely. For more information about the
deferral of employee social security tax, see Notice 2020- If you’re correcting the refundable portion of the employee
65, 2020-38 I.R.B. 567, available at IRS.gov/irb/ retention credit that you reported on Form CT-1, line 24
2020-38_IRB#NOT-2020-65; and Notice 2021-11, (2020) or line 24a (2021), for qualified compensation paid
2021-06 I.R.B. 827, available at IRS.gov/irb/ after March 12, 2020, and before July 1, 2021, enter the
2021-06_IRB#NOT-2021-11. total corrected amount from Worksheet 2, Step 2, line 2i,
Be sure to explain the reasons for any corrections on in column 1. In column 2, enter the amount you originally
line 43. reported or as previously corrected. In column 3, enter the

Instructions for Form CT-1 X (Rev. 3-2024) 17

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difference between columns 1 and 2. For more information compensation is only available for compensation paid in
about the employee retention credit for qualified 2021, 2022, or 2023 with respect to leave taken after
compensation paid after March 12, 2020, and before March 31, 2021, and before October 1, 2021. If you're
January 1, 2021, see Notice 2021-20. See Notice correcting a year before 2021, don't enter any amount on
2021-23 for more information about the employee line 25b.
retention credit for qualified compensation paid after
December 31, 2020, and before July 1, 2021. Also see Copy the amount in column 3 to column 4. However, to
section IV of Notice 2021-49, and Rev. Proc. 2021-33. properly show the amount as a credit or balance due item,
enter a positive number in column 3 as a negative number
Copy the amount in column 3 to column 4. However, to in column 4 or a negative number in column 3 as a
properly show the amount as a credit or balance due item, positive number in column 4. For an example of how to
enter a positive number in column 3 as a negative number report amounts in columns 1–4 for an employment tax
in column 4 or a negative number in column 3 as a credit, see the instructions for line 19, earlier.
positive number in column 4. For an example of how to Be sure to explain the reasons for this correction on
report amounts in columns 1–4, see the instructions for line 43.
line 19, earlier.
25c. Refundable Portion of COBRA Premium
Be sure to explain the reasons for this correction on
Assistance Credit
line 43.
COBRA premium assistance was available for periods of
coverage beginning on or after April 1, 2021, through
Instructions for Qualified Compensation Paid After
periods of coverage beginning on or before September
June 30, 2021, and Before January 1, 2022 30, 2021. For more information, see Credit for COBRA
premium assistance payments is limited to periods of
If you're correcting the refundable portion of the employee
coverage beginning on or after April 1, 2021, through
retention credit that you reported on Form CT-1, line 24a,
periods of coverage beginning on or before September
for qualified compensation paid after June 30, 2021, and
30, 2021. under Reminders.
before January 1, 2022, enter the total corrected amount
from Worksheet 4, Step 2, line 2i, in column 1. In column If you’re correcting the refundable portion of the
2, enter the amount you originally reported or as COBRA premium assistance credit that you reported on
previously corrected. In column 3, enter the difference Form CT-1, line 24c, enter the total corrected amount from
between columns 1 and 2. For more information about the Worksheet 5, Step 2, line 2h, in column 1. In column 2,
employee retention credit for qualified compensation paid enter the amount you originally reported or as previously
after June 30, 2021, and before January 1, 2022, see corrected. In column 3, enter the difference between
Notice 2021-49 and Rev. Proc. 2021-33. See Notice columns 1 and 2.
2021-65 for modifications to Notice 2021-49.
Copy the amount in column 3 to column 4. However, to
Copy the amount in column 3 to column 4. However, to properly show the amount as a credit or balance due item,
properly show the amount as a credit or balance due item, enter a positive number in column 3 as a negative number
enter a positive number in column 3 as a negative number in column 4 or a negative number in column 3 as a
in column 4 or a negative number in column 3 as a positive number in column 4. For an example of how to
positive number in column 4. For an example of how to report amounts in columns 1–4 for an employment tax
report amounts in columns 1–4 for an employment tax credit, see the instructions for line 19, earlier.
credit, see the instructions for line 19, earlier. Be sure to explain the reasons for this correction on
Be sure to explain the reasons for this correction on line 43.

line 43. Corrections to Form CT-1, Line 26
25b. Refundable Portion of Credit for Qualified Form CT-1 X doesn't include a line to correct amounts
Sick and Family Leave Compensation for Leave reported on Form CT-1, line 26, for the total advances
received from filing Form(s) 7200 for the year. If a
Taken After March 31, 2021, and Before October
discrepancy exists between the amount reported on Form
1, 2021 CT-1 and the amount of advance payments issued, the
If you’re correcting the refundable portion of the credit for IRS will generally correct the amount reported on Form
qualified sick and family leave compensation for leave CT-1, line 26, to match the amount of advance payments
taken after March 31, 2021, and before October 1, 2021, issued.
that you reported on Form CT-1, line 24b, enter the total
corrected amount from Worksheet 3, Step 2, line 2s, in 26. Total
column 1. In column 2, enter the amount you originally Combine the amounts from column 4 on lines 21–25c and
reported or as previously corrected. In column 3, enter the enter the result on line 26.
difference between columns 1 and 2. For more information
about the credit for qualified sick and family leave Your credit. If the amount entered on line 26 is less than
compensation, go to IRS.gov/PLC. 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, • If you checked the box on line 1, include this amount on
line 24b, the credit for qualified sick and family leave Form CT-1, line 20 (“Total railroad retirement tax

18 Instructions for Form CT-1 X (Rev. 3-2024)

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deposits”) for the year during which you filed Form CT-1 X. amounts if you’re claiming any credits for the first time on
Don’t make any changes to your Record of Railroad Form CT-1 X. Use Worksheets 1–5, as applicable, to
Retirement Tax Liability in Part II of Form CT-1 or on Form refigure your credits based on the corrected amounts
945-A, unless you were assessed an FTD penalty. For reported in column 1. Be sure to explain the reasons for
more information, see the Form 945-A instructions. The your corrections to lines 27–40 on line 43.
amounts reported on the record should reflect your actual
tax liability for the period. 27. Qualified Sick Leave Compensation for
• If you checked the box on line 2, you’re filing a claim for Leave Taken After March 31, 2020, and Before
refund or abatement of the amount shown. April 1, 2021
If your credit is less than $1, we will send a refund or If you’re correcting the qualified sick leave compensation
apply it to your next return only if you ask us in writing to for leave taken after March 31, 2020, and before April 1,
do so. 2021, that you reported on Form CT-1, line 30, enter the
Amount you owe. If the amount entered on line 26 is a total corrected amount for all employees in column 1. In
positive number, you must pay the amount you owe by column 2, enter the amount you originally reported on
the time you file Form CT-1 X. You may not use any Form CT-1, line 30, or as previously corrected. In column
credit that you show on another Form CT-1 X to pay the 3, enter the difference between columns 1 and 2.
amount you owe, even if you filed for the amount you owe Qualified sick leave compensation reported on this line is
and the credit at the same time. compensation (determined without regard to the
exclusions under section 3231(e)(1)) paid under the
If you owe tax and are filing a timely Form CT-1 X, don’t Emergency Paid Sick Leave Act (EPSLA) as enacted
file an amended Form 945-A unless you were assessed under the Families First Coronavirus Response Act
an FTD penalty caused by an incorrect, incomplete, or (FFCRA) and as amended by the COVID-related Tax
missing Form 945-A. Don’t include the tax increase Relief Act of 2020. Enter the corrected amount from
reported on Form CT-1 X on any amended Form 945-A column 1 on Worksheet 1, Step 2, line 2a.
you file.
If you owe tax and are filing a late Form CT-1 X, that is, 28. Qualified Health Plan Expenses Allocable to
after the due date for Form CT-1 for the period in which Qualified Sick Leave Compensation for Leave
you discovered the error, you must file an amended Form Taken After March 31, 2020, and Before April 1,
945-A with the Form CT-1 X. Otherwise, the IRS may 2021
assess an “averaged” FTD penalty. The total tax reported
on Form 945-A, line M, must match the corrected tax If you’re correcting the qualified health plan expenses
(Form CT-1, line 19 (line 15 for years before 2020), allocable to qualified sick leave compensation for leave
combined with any correction reported on Form CT-1 X, taken after March 31, 2020, and before April 1, 2021, that
line 21) for the year, less any previous abatements and you reported on Form CT-1, line 31, enter the total
interest-free tax assessments. corrected amount for all employees in column 1. In column
Payment methods. You may pay the amount you owe 2, enter the amount you originally reported or as
on line 26 electronically using the Electronic Federal Tax previously corrected. In column 3, enter the difference
Payment System (EFTPS) or by a check or money order. between columns 1 and 2. Enter the corrected amount
• The preferred method of payment is EFTPS. For more from column 1 on Worksheet 1, Step 2, line 2b.

information, go to EFTPS.gov or call 800-555-4477. To 29. Qualified Family Leave Compensation for
contact EFTPS using Telecommunications Relay Services
(TRS) for people who are deaf, hard of hearing, or have a Leave Taken After March 31, 2020, and Before
speech disability, dial 711 and then provide the TRS April 1, 2021
assistant the 800-555-4477 number above or If you’re correcting the qualified family leave compensation
800-733-4829. Additional information about EFTPS is also for leave taken after March 31, 2020, and before April 1,
available in Pub. 966. 2021, you reported on Form CT-1, line 32, enter the total
• If you pay by check or money order, make it payable to corrected amount for all employees in column 1. In column
“United States Treasury.” On your check or money order, 2, enter the amount you originally reported on Form CT-1,
be sure to write your EIN, “Form CT-1 X,” and the year line 32, or as previously corrected. In column 3, enter the
corrected. difference between columns 1 and 2. Qualified family
You don’t have to pay if the amount you owe is less than leave compensation reported on this line is compensation
$1. (determined without regard to the exclusions under
section 3231(e)(1)) paid under the Emergency Family and
Lines 27–40 Medical Leave Expansion Act (Expanded FMLA) as
For lines 27–40, you’ll only enter amounts in columns 1, 2, enacted under the FFCRA and as amended by the
and 3. These lines don’t have an entry space for column 4 COVID-related Tax Relief Act of 2020. Enter the corrected
because these adjustments don’t directly result in an amount from column 1 on Worksheet 1, Step 2, line 2e.
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

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30. Qualified Health Plan Expenses Allocable to exclusions under section 3231(e)(1)) paid under the
Qualified Family Leave Compensation for Leave EPSLA as enacted under the FFCRA and amended for
Taken After March 31, 2020, and Before April 1, purposes of the ARP. Enter the corrected amount from
column 1 on Worksheet 3, Step 2, line 2a.
2021
If you’re correcting the qualified health plan expenses Be sure to explain the reasons for this correction on
allocable to qualified family leave compensation for leave line 43.
taken after March 31, 2020, and before April 1, 2021, that
34. Qualified Health Plan Expenses Allocable to
you reported on Form CT-1, line 33, enter the total
corrected amount for all employees in column 1. In column Qualified Sick Leave Compensation for Leave
2, enter the amount you originally reported or as Taken After March 31, 2021, and Before October
previously corrected. In column 3, enter the difference 1, 2021
between columns 1 and 2. Enter the corrected amount If you’re correcting the qualified health plan expenses
from column 1 on Worksheet 1, Step 2, line 2f. allocable to qualified sick leave compensation for leave
taken after March 31, 2021, and before October 1, 2021,
31. Qualified Compensation for the Employee that you reported on Form CT-1, line 37, enter the total
Retention Credit corrected amount for all employees in column 1. In column
Use line 31 only for corrections to a 2020 or 2021 Form 2, enter the amount you originally reported or as
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 from column 1 on Worksheet 3, Step 2, line 2b.
employee retention credit that you reported on Form CT-1,
line 34, enter the total corrected amount for all employees Be sure to explain the reasons for this correction on
in column 1. In column 2, enter the amount you originally line 43.
reported or as previously corrected. In column 3, enter the
difference between columns 1 and 2. Enter the corrected 35. Amounts Under Certain Collectively
amount from column 1 on Worksheet 2, Step 2, line 2a, for Bargained Agreements Allocable to Qualified
qualified compensation paid after March 12, 2020, and Sick Leave Compensation for Leave Taken After
before July 1, 2021. Enter the corrected amount from March 31, 2021, and Before October 1, 2021
column 1 on Worksheet 4, Step 2, line 2a, for qualified
If you’re correcting the amounts under certain collectively
compensation paid after June 30, 2021, and before
bargained agreements allocable to qualified sick leave
January 1, 2022.
compensation for leave taken after March 31, 2021, and
32. Qualified Health Plan Expenses for the before October 1, 2021, that you reported on Form CT-1,
line 38, enter the total corrected amount for all employees
Employee Retention Credit
in column 1. In column 2, enter the amount you originally
Use line 32 only for corrections to a 2020 or 2021 Form reported or as previously corrected. In column 3, enter the
CT-1. difference between columns 1 and 2. Enter the corrected
If you’re correcting the qualified health plan expenses amount from column 1 on Worksheet 3, Step 2, line 2c.
allocable to qualified compensation for the employee Be sure to explain the reasons for this correction on
retention credit that you reported on Form CT-1, line 35, line 43.
enter the total corrected amount for all employees in
column 1. In column 2, enter the amount you originally 36. Qualified Family Leave Compensation for
reported or as previously corrected. In column 3, enter the Leave Taken After March 31, 2021, and Before
difference between columns 1 and 2. Enter the corrected October 1, 2021
amount from column 1 on Worksheet 2, Step 2, line 2b, for
qualified health plan expenses allocable to qualified If you’re correcting the qualified family leave compensation
compensation paid after March 12, 2020, and before July for leave taken after March 31, 2021, and before October
1, 2021. Enter the corrected amount from column 1 on 1, 2021, that you reported on Form CT-1, line 39, enter the
Worksheet 4, Step 2, line 2b, for qualified health plan total corrected amount in column 1. In column 2, enter the
expenses allocable to qualified compensation paid after amount you originally reported or as previously corrected.
June 30, 2021, and before January 1, 2022. In column 3, enter the difference between columns 1 and
2. Qualified family leave compensation reported on this
33. Qualified Sick Leave Compensation for line is compensation (determined without regard to the
Leave Taken After March 31, 2021, and Before exclusions under section 3231(e)(1)) paid under the
Expanded FMLA as enacted under the FFCRA and
October 1, 2021 amended for purposes of the ARP. Enter the corrected
If you’re correcting the qualified sick leave compensation amount from column 1 on Worksheet 3, Step 2, line 2g.
for leave taken after March 31, 2021, and before October
1, 2021, that you reported on Form CT-1, line 36, enter the Be sure to explain the reasons for this correction on
total corrected amount in column 1. In column 2, enter the line 43.
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

20 Instructions for Form CT-1 X (Rev. 3-2024)

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37. Qualified Health Plan Expenses Allocable to                filed 2021 Form CT-1 but you’re now claiming the 
Qualified Family Leave Compensation for Leave                  employee retention credit as a recovery startup business, 
Taken After March 31, 2021, and Before October                 complete line 39 with the total of the corrected amounts 
                                                               included on Form CT-1 X, lines 20a and 25a.
1, 2021
If you’re correcting the qualified health plan expenses        Recovery startup business. For the third quarter of 
allocable to qualified family leave compensation for leave     2021, a recovery startup business is an employer that:
taken after March 31, 2021, and before October 1, 2021,        • Began carrying on a trade or business after February 
that you reported on Form CT-1, line 40, enter the total       15, 2020;
corrected amount for all employees in column 1. In column      • Had average annual gross receipts of $1 million or less 
2, enter the amount you originally reported or as              for the 3 tax years ending with the tax year before the 
previously corrected. In column 3, enter the difference        calendar quarter in which the employee retention credit is 
between columns 1 and 2. Enter the corrected amount            claimed; and
from column 1 on Worksheet 3, Step 2, line 2h.                 • Isn’t otherwise eligible for the employee retention credit 
                                                               because business operations weren’t fully or partially 
  Be sure to explain the reasons for this correction on        suspended due to a governmental order or because gross 
line 43.                                                       receipts (within the meaning of section 448(c) or, if you're 
                                                               a tax-exempt organization, section 6033) weren’t less than 
38. Amounts Under Certain Collectively                         80% of the gross receipts for the same calendar quarter in 
Bargained Agreements Allocable to Qualified                    calendar year 2019.
Family Leave Compensation for Leave Taken 
After March 31, 2021, and Before October 1,                    40. If You’re Eligible for the Employee Retention 
2021                                                           Credit in the Fourth Quarter of 2021 Solely 
If you’re correcting the amounts under certain collectively    Because Your Business Is a Recovery Startup 
bargained agreements allocable to qualified family leave       Business…
compensation for leave taken after March 31, 2021, and         For the fourth quarter of 2021, only a recovery startup 
before October 1, 2021, that you reported on Form CT-1,        business may claim the employee retention credit. 
line 41, enter the total corrected amount for all employees    Whether you complete line 40 to tell us if you're eligible for 
in column 1. In column 2, enter the amount you originally      the employee retention credit in the fourth quarter of 2021 
reported or as previously corrected. In column 3, enter the    solely because your business is a recovery startup 
difference between columns 1 and 2. Enter the corrected        business depends on its applicability and whether you 
amount from column 1 on Worksheet 3, Step 2, line 2i.          originally reported an amount on your 2021 Form CT-1, 
  Be sure to explain the reasons for this correction on        line 43.
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 
         Recovery startup businesses are limited to a          originally filed 2021 Form CT-1 but that is no longer 
  !      maximum employee retention credit of $50,000          accurate, explain in detail on line 43 why you no longer 
CAUTION  per quarter. Don’t enter more than $50,000 per        think that you’re a recovery startup business.
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 
39. If You’re Eligible for the Employee Retention              originally filed 2021 Form CT-1 and this still doesn’t apply, 
Credit in the Third Quarter of 2021 Solely                     don’t complete line 40.
Because Your Business Is a Recovery Startup                    • If you didn’t report the total of any amounts included on 
                                                               lines 17a and 24a for the fourth quarter on your originally 
Business…                                                      filed 2021 Form CT-1 but you’re now claiming the 
Whether you complete line 39 to tell us if you're eligible for employee retention credit as a recovery startup business, 
the employee retention credit in the third quarter of 2021     complete line 40 with the total of the corrected amounts 
solely because your business is a recovery startup             included on Form CT-1 X, lines 20a and 25a.
business depends on its applicability and whether you 
originally reported an amount on your 2021 Form CT-1,            For the fourth quarter of 2021, a recovery startup 
line 42.                                                       business is an employer that began carrying on a trade or 
• If you reported the total of any amounts included on         business after February 15, 2020, and had average 
lines 17a and 24a on line 42 for the third quarter on your     annual gross receipts of $1 million or less for the 3 tax 
originally filed 2021 Form CT-1 but that is no longer          years ending with the tax year before the calendar quarter 
accurate, explain in detail on line 43 why you no longer       in which the employee retention credit is claimed.
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

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Part 4: Explain Your Corrections for “The $1,000 difference shown in column 3 of lines 6
and 7 was discovered on May 15, 2024, during an internal
the Calendar Year You’re Correcting payroll audit. We discovered that we included $1,000 of
compensation for one of our employees twice. This
41. Corrections of Both Underreported and correction removes the reported compensation that was
Overreported Amounts never paid.”
Check the box on line 41 if any corrections you entered on
Part 5: Sign Here
lines 6–20d, 22–25c, or 27–40 in column 3 reflect both
underreported and overreported amounts. You must complete all five pages of Form CT-1 X and sign
Example. If you had an increase to Tier 1 Employer it on page 5. If you don’t sign, the processing of Form
compensation of $15,000 for Nathan Smith and a CT-1 X will be delayed.
decrease to Tier 1 Employer compensation of $5,000 for Who must sign the Form CT-1 X? The following
Leah Green, you would enter $10,000 on line 6, column 3. persons are authorized to sign the return for each type of
That $10,000 represents the net change resulting from business entity.
corrections. • Sole proprietorship—The individual who owns the
On line 43, you must explain the reason for both the business.
$15,000 increase and the $5,000 decrease. • Corporation (including a limited liability company
(LLC) treated as a corporation)—The president, vice
42. Did You Reclassify Any Workers? president, or other principal officer duly authorized to sign.
Check the box on line 42 if you reclassified any workers to • Partnership (including an LLC treated as a
be independent contractors or nonemployees. Also check partnership) or unincorporated organization—A
this box if the IRS (or you) determined that workers you responsible and duly authorized partner, member, or
treated as independent contractors or nonemployees officer having knowledge of its affairs.
should be classified as employees. On line 43, provide a • Single-member LLC treated as a disregarded entity
detailed reason why any worker was reclassified. 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 • Trust or estate—The fiduciary.
because you mistakenly treated all workers as A duly authorized agent of the taxpayer may also sign
independent contractors or as nonemployees, file a Form Form CT-1 X if a valid power of attorney has been filed.
CT-1 for each delinquent year. Alternative signature method. Corporate officers or
Write “Misclassified Employees” in bold letters duly authorized agents may sign Form CT-1 X by rubber
across the top margin of page 1 of each Form CT-1. stamp, mechanical device, or computer software program.
Complete Form CT-1 using the Instructions for Form CT-1. For details and required documentation, see Rev. Proc.
Attach a Form CT-1 X to each Form CT-1. Complete the 2005-39, 2005-28 I.R.B. 82, available at IRS.gov/irb/
top of Form CT-1 X, including the date you discovered the 2005-28_IRB#RP-2005-39.
error, and provide a detailed explanation on line 43.
Paid Preparer Use Only
43. Explain Your Corrections A paid preparer must sign Form CT-1 X and provide the
Treasury regulations require you to explain in detail the information in the Paid Preparer Use Only section of Part 5
grounds and facts relied upon to support each correction. if the preparer was paid to prepare Form CT-1 X and isn’t
On line 43, describe in detail each correction you entered an employee of the filing entity. Paid preparers must sign
in column 4 on lines 6–20d and 22–25c. Also use line 43 paper returns with a manual signature. The preparer must
to describe corrections made on lines 27–40. If you need give the employer the return to file with the IRS and
more space, attach additional sheets, but be sure to write include a copy of the return for the employer's records.
your name, EIN, “Form CT-1 X,” and the calendar year
If you’re a paid preparer, write your Preparer Tax
you’re correcting on the top of each sheet.
Identification Number (PTIN) in the space provided.
You must describe the events that caused the Include your complete address. If you work for a firm, write
underreported or overreported amounts. Explanations the firm's name and the EIN of the firm. You can apply for
such as “RRTA compensation was overstated,” a PTIN online or by filing Form W-12. For more information
“administrative/payroll errors were discovered,” or “taxes about applying for a PTIN online, go to IRS.gov/PTIN. You
were not withheld” are insufficient and may delay the can’t use your PTIN in place of the EIN of the tax
processing of your Form CT-1 X because the IRS may preparation firm.
need to ask for a more complete explanation.
Generally, you’re not required to complete this section if
Provide the following information in your explanation of you’re filing the return as a reporting agent and have a
each correction. valid Form 8655 on file with the IRS. However, a reporting
• Form CT-1 X line number(s) affected. agent must complete this section if the reporting agent
• Date you discovered the error. offered legal advice, for example, advising the client on
• Difference (amount of the error). determining whether its workers are employees or
• Cause of the error. independent contractors for federal tax purposes.
You may report the information in paragraph form. The
following paragraph is an example.

22 Instructions for Form CT-1 X (Rev. 3-2024)

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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.        Figure the Tier 1 Employer Tax
        1a     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      
        1b     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      
        1c     Tier 1 Employer tax. Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             1c  
Step 2.        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     Credit for qualified sick leave compensation. Add lines 2a, 2b, and 2c . . . . . . . . .                                             2d  
        2e     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                                         2e(i)
               definition of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . .                                
        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     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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2i  
        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

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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 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  
        1c 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  
        1d 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 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  
        2b 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 Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2c  
        2d 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 Enter the amount of the Tier 1 Employer tax from Step 1, line 1a, or, if applicable, 
           Step 1, line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2e  
        2f 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 Subtract line 2f from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          2g  
        2h 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 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 . . . . . . . . . . . . . . . . . . . .                                   2i

24                                                                                    Instructions for Form CT-1 X (Rev. 3-2024)

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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      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       
        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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         1b       
        1c      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      Tier 1 Employer tax on qualified sick leave compensation. Multiply line 2a(iv) by 6.2% 
                (0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d       
        2e      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(ii)   
        2g(iii) Enter the amount, if any, included on line 2g 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 family leave compensation was limited by the Tier 1 compensation base    . . . . . . . . .                              2g(iii)  
        2g(iv) Subtract line 2g(iii) from line 2g(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2g(iv)   
        2h      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      Credit for qualified family leave compensation. Add lines 2g, 2h, 2i, 2j, and 2k . . . . . . . . .                                         2l  
        2m      Credit for qualified sick and family leave compensation. Add lines 2f and 2l . . . . . . . . . .                                           2m  
        2n      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      Add lines 2n and 2o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       2p       
        2q      Credit for qualified sick and family leave compensation after adjusting for other credits. 
                Subtract line 2p from line 2m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  2q  
        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 . . . . . . . . . . . . . . . . . . . . .                                 2r
        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

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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 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  
        1c 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  
        1d 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 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  
        2b 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 Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            2c  
        2d 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 Enter the amount of the Tier 1 Employer Medicare tax from Step 1, line 1a, or, if 
           applicable, Step 1, line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              2e  
        2f 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 Subtract line 2f from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              2g  
        2h 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 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 . . . . . . . . . . . . . . . . . . .                                       2i

26                                                                                           Instructions for Form CT-1 X (Rev. 3-2024)

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Worksheet 5. Adjusted COBRA Premium Assistance Credit                                                                                        Keep for Your Records
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                   
        1b 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  
        1c 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  
        1d Tier 1 Employer Medicare tax. Add lines 1b and 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          1d                   
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 Enter the amount of the Tier 1 Employer Medicare tax from Step 1, line 1a, or, if applicable, 
           Step 1, line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2b  
        2c 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 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  
        2e 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 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 . . . . . . . . . . . . . . . . . . .                             2h

Instructions for Form CT-1 X (Rev. 3-2024)                                                                                                                        27

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Generally, tax returns and return information are
and Publications From the IRS? confidential, as required by section 6103.
You can download or print some of the forms and The time needed to complete and file Form CT-1 X will
publications you may need on IRS.gov/Forms. vary depending on individual circumstances. The
Otherwise, you can go to IRS.gov/OrderForms to estimated average time is:
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process your order for forms and publications as soon as Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . 39 hr., 13 min.
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You can get forms and publications faster online. Preparing and sending the form to the IRS . . . . 1 hr., 53 min.

Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue If you have comments concerning the accuracy of
laws of the United States. You’re required to give us this these time estimates or suggestions for making this form
information. We need it to ensure that you’re complying simpler, we would be happy to hear from you. You can
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right amount of tax. can write to the Internal Revenue Service, Tax Forms and
You’re not required to provide the information requested Publications Division, 1111 Constitution Ave. NW,
on a form that is subject to the Paperwork Reduction Act IR-6526, Washington, DC 20224. Don’t send Form CT-1 X
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28 Instructions for Form CT-1 X (Rev. 3-2024)

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