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                                                                                                         Department of the Treasury
                                                                                                         Internal Revenue Service
Instructions for Form CT-1 X

(Rev. March 2023)
Adjusted Employer's Annual Railroad Retirement Tax Return or Claim for Refund

Section references are to the Internal Revenue Code                          instructions don't repeat all of the information included in 
unless otherwise noted.                                                      the Instructions for Form CT-1. For example, these 
                                                                             instructions don't discuss who is eligible to claim the credit 
Contents                                                            Page
                                                                             for qualified sick and family leave compensation, the 
Future Developments     . . . . . . . . . . . . . . . . . . . . . . . .   1
                                                                             employee retention credit, or the COBRA premium 
What's New  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1  assistance credit. The current Instructions for Form CT-1 
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2  are available at IRS.gov/CT1. If you need a prior revision 
General Instructions: Understanding Form                                     of the Instructions of Form CT-1, select the link for "All 
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  What's New
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 
                                                                             compensation, as enacted under the Families First 
Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . .   6
                                                                             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                              For more information about the credit for qualified sick and 
and Family Leave Compensation for Leave                                      family leave compensation, go to IRS.gov/PLC.
Taken After March 31, 2020, and Before April                                 Corrections to amounts reported on Form CT-1, lines 
1, 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 
for Qualified Compensation Paid After March                                  March 31, 2020, and before April 1, 2021, are reported on 
12, 2020, and Before January 1, 2021, for a                                  Form CT-1 X, lines 19, 24, 27, 28, 29, and 30, 
2020 Form CT-1 or Qualified Compensation                                     respectively. Corrections to amounts reported on Form 
Paid After December 31, 2020, and Before July                                CT-1, lines 17b, 24b, 36, 37, 38, 39, 40, and 41, for the 
1, 2021, for a 2021 Form CT-1 . . . . . . . . . . . . . .                 24 credit for qualified sick and family leave compensation for 
Worksheet 3. Adjusted Credit for Qualified Sick                              leave taken after March 31, 2021, and before October 1, 
and Family Leave Compensation for Leave                                      2021, are reported on Form CT-1 X, lines 20b, 25b, 33, 
Taken After March 31, 2021, and Before                                       34, 35, 36, 37, and 38, respectively.
October 1, 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 
Worksheet 5. Adjusted COBRA Premium                                          Taxpayer Certainty and Disaster Tax Relief Act of 2020 
Assistance Credit . . . . . . . . . . . . . . . . . . . . . . .           27 was limited to qualified compensation paid after March 12, 
How Can You Get Forms, Instructions, and                                     2020, and before July 1, 2021. The employee retention 
Publications From the IRS? . . . . . . . . . . . . . . . .                28 credit under section 3134 of the Internal Revenue Code, 
                                                                             as enacted by the ARP and amended by the Infrastructure 
Future Developments                                                          Investment and Jobs Act, was limited to qualified 
For the latest information about developments related to                     compensation paid after June 30, 2021, and before 
Form CT-1 X and its instructions, such as legislation                        October 1, 2021, unless the employer was a recovery 
enacted after they were published, go to IRS.gov/CT1X.                       startup business. An employer that was a recovery startup 
                                                                             business could also claim the employee retention credit 
    Before you proceed with these instructions and                           for qualified compensation paid after September 30, 2021, 
TIP completing Form CT-1 X, you'll need a copy of the                        and before January 1, 2022. For more information about 
    Instructions for Form CT-1 because these 

Feb 7, 2023                                                           Cat. No. 20339E

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

-2- Instructions for Form CT-1 X (Rev. 3-2023)

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1 Employee Additional Medicare Tax withholding are When you discover an error on a previously filed Form
reported on Form CT-1, lines 6 and 12. Certain errors CT-1, you must:
discovered on a previously filed Form CT-1 are corrected • Correct that error using Form CT-1 X;
on Form CT-1 X, lines 11 and 17. However, you can’t file • File a separate Form CT-1 X for each Form CT-1 that
Form CT-1 X to correct Tier 1 Employee Additional you’re correcting; and
Medicare Tax actually withheld from an employee in a • Generally, file Form CT-1 X separately. Don’t file Form
prior year. See the instructions for lines 11 and 17, later, CT-1 X with Form CT-1. However, see the instructions for
for more information on the types of errors that can be line 42, later, for an exception.
corrected and how the correction is reported on Form
If you didn’t file a Form CT-1 for 1 or more years, don’t
CT-1 X. For more information about Tier 1 Employee
use Form CT-1 X. Instead, file Form CT-1 for each of
Additional Medicare Tax withholding, see the Instructions
those years. Also, see When Should You File Form CT-1
for Form CT-1 or go to IRS.gov/ADMTfaqs.
X, later. However, if you didn’t file Forms CT-1 because
you improperly treated workers as independent
General Instructions: contractors or nonemployees and are now reclassifying
them as employees, see the instructions for line 42, later.
Understanding Form CT-1 X
Unless otherwise specified in these instructions,
What Is the Purpose of Form CT-1 X? TIP an underreported employment tax credit or Tier 1
tax deferral should be treated like an overreported
Use Form CT-1 X to correct errors on a previously filed tax amount. An overreported employment tax credit or
Form CT-1. Use Form CT-1 X to correct: Tier 1 tax deferral should be treated like an underreported
• Tier 1 Employee tax, Tier 1 Employee Medicare tax, tax amount. For more information, including which
Tier 1 Employee Additional Medicare Tax, and Tier 2 process to select on lines 1 and 2, see Correcting an
Employee tax; employment tax credit or Tier 1 tax deferral, later.
• Tier 1 Employer tax, Tier 1 Employer Medicare tax, and
Tier 2 Employer tax; Report the correction of underreported and
• Deferred amount of the Tier 1 Employer tax; overreported tax amounts for the same tax period on a
• Deferred amount of the Tier 1 Employee tax; single Form CT-1 X, unless you’re requesting a refund or
• Amounts reported on Form CT-1 for the credit for abatement. If you’re requesting a refund or abatement and
qualified sick and family leave compensation for leave are correcting both underreported and overreported tax
taken after March 31, 2020, and before April 1, 2021, amounts, file one Form CT-1 X correcting the
including adjustments to Form CT-1, lines 16, 23, 30, 31, underreported tax amounts only and a second Form CT-1
32, and 33; X correcting the overreported tax amounts.
• Amounts reported on Form CT-1 for the credit for
qualified sick and family leave compensation for leave You’ll use the adjustment process if you underreported
taken after March 31, 2021, and before October 1, 2021, RRTA taxes and are making a payment, or if you
including adjustments to Form CT-1, lines 17b, 24b, 36, overreported RRTA taxes and will be applying the credit
37, 38, 39, 40, and 41; to Form CT-1 for the period during which you file Form
• Amounts reported on Form CT-1 for the employee CT-1 X. However, see the Caution under Is There a
retention credit, including adjustments to Form CT-1, lines Deadline for Filing Form CT-1 X, later, if you’re correcting
17 (2020) or 17a (2021), 24 (2020) or 24a (2021), 34, 35, overreported tax amounts during the last 90 days of a
42, and 43; and period of limitations. You’ll use the claim process if you
• Amounts reported on Form CT-1 for the COBRA overreported RRTA taxes and are requesting a refund or
premium assistance credit, for periods of coverage abatement of the overreported tax amount. Follow the
beginning on or after April 1, 2021, through periods of chart on page 6 of Form CT-1 X for help in choosing
coverage beginning on or before September 30, 2021, whether to use the adjustment process or the claim
including adjustments to Form CT-1, lines 17c, 17d, and process. Be sure to provide a detailed explanation on
24c. line 43 for each correction that you show on Form CT-1 X.
Use Form 843, Claim for Refund and Request for Continue to report current year adjustments on Form
Abatement, to request a refund or abatement of assessed CT-1, line 14.
interest or penalties. Don’t request a refund or abatement You have additional requirements to complete when
of assessed interest or penalties on Form CT-1 or Form filing Form CT-1 X, such as certifying that you filed (or will
CT-1 X. file) all applicable Forms W-2, Wage and Tax Statements,
We use the terms “correct” and “corrections” on and Forms W-2c, Corrected Wage and Tax Statements,
TIP Form CT-1 X and in these instructions to include with the Social Security Administration (SSA). For
interest-free adjustments under sections 6205 and corrections of overreported Tier 1 and Tier 2 taxes, you
6413 and claims for refund and abatement under sections must make any certifications that apply to your situation.
6402, 6414, and 6404. See Rev. Rul. 2009-39 for
Be sure to give us a detailed explanation on line 43 for
examples of how the interest-free adjustment and claim
each correction you show on Form CT-1 X.
for refund rules apply in 10 different situations. You can
find Rev. Rul. 2009-39, 2009-52 I.R.B. 951 at IRS.gov/irb/
2009-52_IRB#RR-2009-39.

Instructions for Form CT-1 X (Rev. 3-2023) -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 9, 2023, you
local time (Alaska and Hawaii follow Pacific time). discovered that you underreported $1,000 of RRTA
compensation on your 2022 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 29, 2024,
Publications From the IRS, later. because you discovered the error in 2023, and February
29, 2024, is the due date for that year. If you file Form
When Should You File Form CT-1 X? CT-1 X before February 29, 2024, 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
Underreported tax, later. For overreported tax amounts, ! overreported amounts of Tier 1 Employee
you may choose to either make an interest-free CAUTION Additional Medicare Tax unless the amounts
adjustment or file a claim for refund or abatement. If you’re weren’t withheld from 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 2022 Form CT-1 on February 23,
If any due date falls on a Saturday, Sunday, or legal 2023, and payments were timely made. On May 4, 2023,
holiday, you may file Form CT-1 X on the next business you discover that you overreported tax on your 2022 Form
day. The term “legal holiday” means any legal holiday in CT-1. You file Form CT-1 X on June 1, 2023, 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, 2023. When you file your
containing Form CT-1 X is properly addressed, contains 2023 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 2023 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. 3-2023)

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Is There a Deadline for Filing Form correct the 2021 Form CT-1. File a second Form CT-1 X
to correct the 2022 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 top of pages 2, 3, 4, and 5, and on any attachments. If
previously filed Form CT-1 if you file Form CT-1 X within 3 your address has changed since you filed your Form
years of the date the Form CT-1 was filed. We call each of CT-1, enter the corrected information and the IRS will
these time frames a “period of limitations.” For purposes update your address of record. Be sure to write your
of the period of limitations, Form CT-1 is considered filed name, EIN, “Form CT-1 X,” and the calendar year you’re
on the last day in February of the succeeding year if filed correcting on the top of any attachments.

before 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
28, 2022, and payments were timely made. The IRS treats correcting in the box at the top of page 1. Enter the same
the return as if it were filed on February 28, 2022. On calendar 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, You must enter the date you discovered errors. You
2025, which is the end of the period of limitations, and use discover an error when you have enough information to be
the 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 Don’t round entries to whole dollars.
You’re 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 2021 and 2022, file one Form CT-1 X to

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What About Penalties and Interest? Deadline for Filing Form CT-1 X, earlier. This should
Generally, your correction of an underreported tax amount ensure that the IRS will have enough time to process the
won’t be subject to an FTP penalty, FTD penalty, or Form CT-1 X so that the credit will be posted before you
interest if you: file Form CT-1, thus avoiding an erroneous balance due
• File on time (by the due date of the year in which you notice from the IRS. See the example next.
discover the error),
Example—You want your overreported tax applied
• Pay the amount shown on line 26 by the time you file
as a credit on Form CT-1. On December 19, 2023, you
Form CT-1 X,
discover you overreported your tax on your 2022 Form
• Enter the date you discovered the error, and
CT-1 and want to choose the adjustment process. To
• Explain in detail the grounds and facts relied on to
allow the IRS enough time to process the credit, you file
support the correction.
Form CT-1 X on March 8, 2024, and take the credit on
No correction will be eligible for interest-free treatment your 2024 Form CT-1.
if any of the following apply.
• The underreported amounts relate to an issue that was
raised in an examination of a prior period. Specific Instructions
• You knowingly underreported your employment tax
Part 1: Select ONLY One Process
liability.
• You received a notice and demand for payment. Because Form CT-1 X may be used to file either an
• You received a notice of determination under section adjusted railroad retirement tax return or a claim for refund
7436. or abatement, you must check one box on either line 1 or
If you receive a notice about a penalty after you file this line 2. Don’t check both boxes.
return, reply to the notice with an explanation and we will Correcting an employment tax credit or Tier 1 tax de-
determine if you meet reasonable-cause criteria. Don’t ferral. For boxes 1 and 2, if you underreported an
attach an explanation when you file your return. employment tax credit or Tier 1 tax deferral, treat it like
you overreported a tax amount. If you overreported an
Overview of the Process employment tax credit or Tier 1 tax deferral, treat it like
To correct a previously filed Form CT-1, use Form CT-1 X you underreported a tax amount. If you're filing Form CT-1
to file either an adjusted railroad retirement tax return or a X to adjust only an employment tax credit and/or Tier 1 tax
claim for refund or abatement. The adjustment process deferral and you're not correcting any overreported taxes
and the claim process are outlined below. on Form CT-1 X, lines 6–17, skip lines 4 and 5.

If you underreported the tax. If you underreported 1. Adjusted Railroad Retirement Tax Return
the tax on a previously filed Form CT-1, check the box on
line 1 and pay any additional amount you owe by the Check the box on line 1 if you’re correcting underreported
time you file Form CT-1 X. For details on how to make a tax amounts or overreported tax amounts and you would
payment, see the instructions for line 26, later. like to use the adjustment process to correct the errors.
Example—You underreported RRTA taxes. On If you’re correcting both underreported tax amounts
June 23, 2023, you discovered an error that results in and overreported tax amounts on this form, you must
additional tax on your 2022 Form CT-1. File Form CT-1 X check this box. If you check this box, any negative amount
by February 29, 2024, and pay the amount you owe by the shown on line 26 will be applied as a credit (tax deposit) to
time you file. See When Should You File Form CT-1 X, your Form CT-1 for the year in which you’re filing this
earlier. Don’t attach Form CT-1 X to your 2023 Form form. See Example—You want your overreported tax
CT-1. applied as 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
tax on a previously filed Form CT-1, choose one of the ! overreported amounts of Tier 1 Employee
following options. CAUTION Additional Medicare Tax unless the amounts
• Use the adjustment process. Check the box on line 1 to weren’t withheld from 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 charged interest if you file on time, pay on time, enter the
of 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
the first 11 months of the next year. However, there must CT-1 X, line 26, may not be fully available on your Form
be 90 days remaining on the period of limitations when CT-1 if the IRS corrects it during processing or you owe
you file Form CT-1 X. See the Caution under Is There a other taxes, penalties, or interest. The IRS will notify you if

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your claimed credit changes or if the amount available as 3. Filing Forms W-2 or Forms W-2c
a credit on Form CT-1 was reduced because of unpaid Check the box on line 3 to certify that you filed or will file
taxes, penalties, or interest. Forms W-2 or Forms W-2c with the SSA, as required,
Don’t check the box on line 1 if you’re correcting showing your employees' correct wage and tax amounts.
See the General Instructions for Forms W-2 and W-3 for
! overreported tax amounts and the period of
CAUTION limitations on credit or refund for Form CT-1 will detailed information about filing requirements.
expire within 90 days of the date you file Form CT-1 X. You must check the box on line 3 to certify that you filed
Instead, check the box on line 2. See Is There a Deadline Forms W-2 or Forms W-2c even if your corrections on
for Filing Form CT-1 X, earlier. Form CT-1 X don’t change amounts shown on those
forms. For example, if your only correction to Form CT-1
2. Claim involves misstated tax adjustments, which don’t change
Check the box on line 2 to use the claim process if you’re the amounts reported on your employee’s Form W-2 (see
correcting overreported tax amounts only and you’re the instructions for line 18, later), check the box on line 3
claiming a refund or abatement for the negative amount to certify that you already filed all required Forms W-2 and
(credit) shown on line 26. Don’t check this box if you’re W-2c with the SSA. In this situation, you’re certifying that
correcting any underreported tax amounts on this form. you don’t need to file Form W-2c because you already
filed a correct Form W-2.
You must check the box on line 2 if you have a credit (a
negative amount on line 26) and the period of limitations 4. Certifying Overreporting Adjustments
on credit or refund for Form CT-1 will expire within 90 If you overreported RRTA tax and/or Tier 1 Employee
days of the date you file Form CT-1 X. See Is There a Additional Medicare Tax and checked the box on line 1,
Deadline for Filing Form CT-1 X, earlier. check the appropriate box on line 4. You may need to
check more than one box. If you obtained written
The IRS usually processes claims shortly after they are statements from some employees but you couldn’t locate
filed. The IRS will notify you if your claim is denied, employees or secure the statements of the remaining
accepted as filed, or selected to be examined. See Pub. employees, check all applicable boxes. Provide a
556, Examination of Returns, Appeal Rights, and Claims summary on line 43 of the amount of the corrections for
for Refund, for more information. both the employees who provided written statements and
Unless the IRS corrects Form CT-1 X during for those who didn’t.
processing or you owe other taxes, penalties, or interest, You may not use Form CT-1 X to correct
the IRS will refund the amount shown on line 26, plus any ! overreported amounts of Tier 1 Employee
interest that applies. CAUTION Additional Medicare Tax unless the amounts
You may not file a refund claim to correct Tier 1 weren’t withheld from employee compensation.

! Employee Additional Medicare Tax actually 4a. Check the box on line 4a if your overreported amount
CAUTION withheld from employees.
includes each affected employee share of overcollected
Employee RRTA taxes. You’re certifying that you repaid
Part 2: Complete the Certifications or reimbursed the prior year Employee RRTA taxes and
You must complete all certifications that apply by you received written statements from the employees
checking the appropriate boxes. If all of your corrections stating that they didn’t and won’t receive a refund or credit
relate to underreported tax amounts, complete line 3 only; for the prior year taxes. Don’t send these statements to
skip lines 4 and 5 and go to Part 3. the IRS. Keep them for your records. Generally, all
employment tax records must be kept for at least 4 years.
If your corrections relate to overreported tax amounts, Records related to qualified sick leave compensation and
other than corrections related to underreported qualified family leave compensation for leave taken after
employment tax credits and Tier 1 tax deferrals, you have March 31, 2021, and before October 1, 2021, and records
a duty to ensure that your employees' rights to recover related to qualified compensation for the employee
overpaid Employee RRTA taxes that you withheld are retention credit paid after June 30, 2021, should be kept
protected. The certifications on lines 4 and 5 address the for at least 6 years. Copies must be submitted to the IRS if
requirement to: requested.
4b. Check the box on line 4b to certify that your
• Repay or reimburse your employees for the overreported amount is only for Employer RRTA taxes on
overcollection of Employee RRTA taxes, or those employees whom you were unable to find or those
• Obtain consents from your employees to file a claim on who didn’t give you a statement described on line 4a.
their behalf. See Rev. Proc. 2017-28 for guidance on the
requirements for both a request for employee consent and 4c. Check the box on line 4c to certify that your
for the employee consent. overreported amount is only for RRTA taxes and/or Tier 1
For purposes of these certifications, Employee RRTA Employee Additional Medicare Tax that you didn’t
taxes consist of Tier 1 Employee tax, Tier 1 Employee withhold from your employees.
Medicare tax, and Tier 2 Employee tax. Employer RRTA
taxes consist of Tier 1 Employer tax, Tier 1 Employer
Medicare tax, and Tier 2 Employer tax.

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

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If you’re correcting the compensation (other than tips line 7 (column 1)
and sick pay) for the Tier 1 Employer tax you reported on - line 7 (column 2)
Form CT-1, line 1, enter the total corrected amount for all line 7 (column 3) If the amount in column 2 is larger
employees in column 1. In column 2, enter the amount than the amount in column 1, use a
you originally reported or as previously corrected. In minus sign in column 3.
column 3, enter the difference between columns 1 and 2.
If you (or the IRS) previously corrected the amount
reported on Form CT-1, line 1, enter in column 2 the Multiply the amount in column 3 by 0.0145 (1.45% tax
amount after any previous corrections. rate) and enter the result in column 4.

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 2022 Use the difference in column 3 to determine your tax
Form CT-1. In December 2023, you discovered that you correction.
included $2,000 in compensation for one of your
employees twice. To correct the error, figure the Column 3 (difference) -2,000.00
difference 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.
Example—Tier 2 Employer compensation
decreased. Following Example—Tier 1 Employer
compensation decreased in the instructions for line 6, the

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compensation that you counted twice was also Tier 2 line 10 (column 1)
Employer compensation. Because you’re correcting your - line 10 (column 2)
2022 Form CT-1 in this example, use the rate from line 3 line 10 (column 3) If the amount in column 2 is larger
(13.1%) shown on that return. To correct the error, figure than the amount in column 1, use a
the difference on Form CT-1 X as shown. minus sign in column 3.

Column 1 (corrected amount) 7,000.00
Column 2 (Form CT-1, line 3) - 9,000.00 Multiply the amount in column 3 by 0.0145 (1.45% tax
Column 3 (difference) -2,000.00 rate) and enter the result in column 4.

line 10 (column 3)
Use the difference in column 3 to determine your tax x 0.0145
correction.
line 10 (column 4) If the amount in column 3 used a minus sign,
also use a minus sign in column 4.
Column 3 (difference) -2,000.00
Tax rate (13.1%) x 0.131
Column 4 (tax correction) -262.00 Be sure to explain the reasons for this correction on
line 43.

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

10. Tier 1 Employee Medicare
Tax—Compensation Multiply the amount in column 3 by 0.009 (0.9% tax
If you’re correcting the compensation, including tips rate) and enter the result in column 4.
reported, but excluding sick pay, for the Tier 1 Employee
Medicare tax you reported on Form CT-1, line 5, enter the line 11 (column 3)
total corrected amount in column 1. In column 2, enter the x 0.009
amount you originally reported or as previously corrected. line 11 (column 4) If the amount in column 3 used a minus sign,
In column 3, enter the difference between columns 1 and also use a minus sign in column 4.
2.

Example—Prior year administrative error
(incorrectly reported amount of Tier 1 Employee

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Additional Medicare Tax actually withheld). Nathan correct the compensation subject to Tier 1 Employee
Smith's compensation exceeded the $200,000 Additional Medicare Tax withholding for your 2022 Form
withholding threshold for Tier 1 Employee Additional CT-1, but you may not correct the Tier 1 Employee
Medicare Tax in November 2022. The total compensation Additional Medicare Tax withheld (column 4) because the
paid to Nathan for 2022 was $230,000. You withheld $270 error involves a previous year and the amount previously
($30,000 x 0.009) from Nathan's compensation. However, reported for the employee represents the actual amount
on your 2022 Form CT-1 you mistakenly reported $3,000 withheld from the employee during 2022.
on line 6 (Compensation column), and Tier 1 Employee
Combination of prior year administrative and nonad-
Additional Medicare Tax withheld of $27 on line 6 (Tax
ministrative errors. If you’re reporting both
column). You discover the error on March 16, 2023. This
administrative errors and nonadministrative errors for the
is an example of an administrative error that may be
same prior year, enter the total corrected amount in
corrected in a later calendar year because the amount
column 1. In column 2, enter the amount you originally
actually withheld differs from the amount reported on your
reported or as previously corrected. In column 3, enter the
2022 Form CT-1. Use Form CT-1 X, line 11, to correct the
difference between columns 1 and 2. However, multiply
error as shown below.
only the amount of compensation reported in column 3
that is related to administrative errors by 0.009 (0.9% tax
Column 1 (corrected amount) 30,000.00 rate). Don’t multiply any compensation reported in column
Column 2 (Form CT-1, line 6 - 3,000.00 3 that was related to nonadministrative errors by 0.009
(Compensation column)) (0.9% tax rate). Use line 43 to explain in detail your
Column 3 (difference) 27,000.00 corrections. The explanation must include the reasons for
the corrections and a breakdown of the amount reported
in column 3 into the amounts related to administrative
Use the difference in column 3 to determine your tax errors and nonadministrative errors.
correction.
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
withholding threshold for Tier 1 Employee Additional
Column 4 (tax correction) 243.00
Medicare Tax in November 2022. The total compensation
paid to Nathan for 2022 was $230,000. You withheld $270
($30,000 x 0.009) from Nathan's compensation. However,
Be sure to explain the reasons for this correction on
on your 2022 Form CT-1, you mistakenly reported $3,000
line 43.
on line 6 (Compensation column), and Tier 1 Employee
Prior year nonadministrative errors. You may correct Additional Medicare Tax withheld of $27 on line 6 (Tax
only the compensation subject to Tier 1 Employee column). The difference in compensation subject to Tier 1
Additional Medicare Tax withholding that you reported on Employee Additional Medicare Tax related to this
Form CT-1, line 6 (Compensation column). Enter the total administrative error is $27,000 ($30,000 - $3,000).
corrected amount in column 1. In column 2, enter the Leah Green's compensation exceeded the $200,000
amount you originally reported or as previously corrected. withholding threshold for Tier 1 Employee Additional
In column 3, enter the difference between columns 1 and Medicare Tax in December 2022. The total compensation
2. paid to Leah for 2022 was $220,000. You were required to
withhold $180 ($20,000 x 0.009) but you withheld nothing
line 11 (column 1) and didn’t report Leah's $20,000 in compensation subject
- line 11 (column 2) to Tier 1 Employee Additional Medicare Tax withholding
line 11 (column 3) If the amount in column 2 is larger on line 6 of your 2022 Form CT-1.
than the amount in column 1, use a You discover both errors on March 16, 2023. Use Form
minus sign in column 3.
CT-1 X, line 11, to correct the errors as shown below.

Column 1 (corrected amount) 50,000.00
Column 2 (Form CT-1, line 6 - 3,000.00
Don’t multiply the amount in column 3 by 0.009 (0.9% (Compensation column))
tax rate). Leave column 4 blank and explain the reasons Column 3 (difference) 47,000.00
for this correction on line 43.
Example—Prior year nonadministrative error
(failure to withhold Tier 1 Employee Additional Determine the portion of compensation reported in
Medicare Tax when required). Leah Green's column 3 that is related to the administrative error
compensation exceeded the $200,000 withholding ($47,000 - $20,000 (nonadministrative error) = $27,000
threshold for Tier 1 Employee Additional Medicare Tax in (administrative error)). Multiply this portion of column 3 by
December 2022. The total compensation paid to Leah for 0.009 (0.9% tax rate) to determine your tax correction.
2022 was $220,000. You were required to withhold $180
($20,000 x 0.009) but you withheld nothing and didn’t
report an amount on line 6 of your 2022 Form CT-1. You
discover the error on March 16, 2023. File Form CT-1 X to

Instructions for Form CT-1 X (Rev. 3-2023) -11-

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Difference related to administrative error 27,000.00 13. Tier 1 Employer Tax—Sick Pay
Tax rate (0.9%) x 0.009 If you’re correcting the sick pay for the Tier 1 Employer tax
Column 4 (tax correction) 243.00 you reported on Form CT-1, line 8, enter the total
corrected amount in column 1. In column 2, enter the
amount you originally reported or as previously corrected.
Be sure to explain the reasons for these corrections on In column 3, enter the difference between columns 1 and
line 43. You must also report that $20,000 of the amount 2.
shown in column 3 was related to the correction of a prior
year nonadministrative error and $27,000 of the amount line 13 (column 1)
shown in column 3 was related to the correction of an - line 13 (column 2)
administrative error. line 13 (column 3) If the amount in column 2 is larger
than the amount in column 1, use a
12. Tier 2 Employee Tax—Compensation minus sign in column 3.
If you’re correcting the compensation, including tips
reported, for the Tier 2 Employee tax you reported on
Form CT-1, line 7, enter the total corrected amount in
Multiply the amount in column 3 by 0.062 (6.2% tax
column 1. In column 2, enter the amount you originally
rate) and enter the result in column 4.
reported or as previously corrected. In column 3, enter the
difference between columns 1 and 2.
line 13 (column 3)
x 0.062
line 12 (column 1)
- line 12 (column 2) line 13 (column 4) If the amount in column 3 used a minus sign,
also use a minus sign in column 4.
line 12 (column 3) If the amount in column 2 is larger
than the amount in column 1, use a
minus sign in column 3.
Example—Tier 1 Employer sick pay increased.
You reported $8,000 as Tier 1 Employer sick pay in
computing the tax on line 8 of your 2022 Form CT-1. In
Multiply the amount in column 3 by the rate stated on December 2023, you discover that you overlooked $1,000
line 7 of the Form CT-1 for the year that you’re in sick pay for one of your employees. To correct the error,
correcting and enter the result in column 4. If the amount figure the difference on Form CT-1 X as shown.
in column 3 used a minus sign, also use a minus sign in
column 4.
Column 1 (corrected amount) 9,000.00
Example—Tier 2 Employee compensation Column 2 (Form CT-1, line 8) - 8,000.00
decreased. Following Example—Tier 1 Employer Column 3 (difference) 1,000.00
compensation decreased in the instructions for line 6, the
compensation that you counted twice was also Tier 2
Employee compensation. Because you’re correcting your Use the difference in column 3 to determine your tax
2022 Form CT-1 in this example, use the rate for line 7 correction.
(4.9%) shown on that return. To correct the error, figure
the difference on Form CT-1 X as shown.
Column 3 (difference) 1,000.00
Tax rate (6.2%) x 0.062
Column 1 (corrected amount) 7,000.00
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
line 43.
Use the difference in column 3 to determine your tax
correction. 14. Tier 1 Employer Medicare Tax—Sick Pay
If you’re correcting the sick pay for the Tier 1 Employer
Column 3 (difference) -2,000.00 Medicare tax you reported on Form CT-1, line 9, enter the
Tax rate (4.9%) x 0.049 total corrected amount in column 1. In column 2, enter the
Column 4 (tax correction) -98.00 amount you originally reported or as previously corrected.
In column 3, enter the difference between columns 1 and
2.
Be sure to explain the reasons for this correction on
line 43. line 14 (column 1)
For purposes of these instructions, all references - line 14 (column 2)
TIP to “sick pay” mean ordinary sick pay, not “qualified line 14 (column 3) If the amount in column 2 is larger
sick leave compensation.” than the amount in column 1, use a
minus sign in column 3.

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Multiply the amount in column 3 by 0.0145 (1.45% tax Be sure to explain the reasons for this correction on
rate) and enter the result in column 4. line 43.

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
reported on Form CT-1, line 12, or previously corrected on
tax 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 43. line 18 (column 3)

16. Tier 1 Employee Medicare Tax—Sick Pay
If you’re correcting the sick pay for the Tier 1 Employee
Medicare tax you reported on Form CT-1, line 11, enter You may need to report negative numbers in any
the total corrected amount in column 1. In column 2, enter TIP column. Make sure that the difference you enter in
the amount you originally reported or as previously column 3 accurately represents the change to
corrected. In column 3, enter the difference between adjustments originally reported or previously corrected on
columns 1 and 2. Form CT-1, line 14.

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)
line 16 (column 3) If the amount in column 2 is larger On line 43, describe what you misreported on Form
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.

Instructions for Form CT-1 X (Rev. 3-2023) -13-

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19. Nonrefundable Portion of Credit for Example—Nonrefundable portion of credit for
Qualified Sick and Family Leave Compensation qualified sick and family leave compensation
for Leave Taken After March 31, 2020, and increased. You originally reported a $1,000
nonrefundable portion of credit for qualified sick and
Before April 1, 2021 family leave compensation on your 2020 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 To properly show the credit increase as a reduction to
information about the credit for qualified sick and family your balance, enter the positive number in column 3 as a
leave 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 line 43.
CT-1 X, line 19, and adjustments to the refundable portion
of the credit are reported on Form CT-1 X, line 24. 20a. Nonrefundable Portion of Employee
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 a 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 a 2021 or 2022 Form enter the total corrected amount from Worksheet 2, Step
CT-1, line 16, the credit for qualified sick and family leave 2, line 2h, in column 1. In column 2, enter the amount you
compensation is only available for compensation paid in originally reported or as previously corrected. In column 3,
2021 or 2022 with respect to any leave taken after March enter the difference between columns 1 and 2.
31, 2020, and before April 1, 2021. If you're correcting a
Copy the amount in column 3 to column 4. However, to
year before 2020, don't enter any amount on line 19. If you
properly show the amount as a credit or balance due item,
claimed the credit for qualified sick and family leave
enter a positive number in column 3 as a negative number
compensation for leave taken after March 31, 2020, and
in column 4 or a negative number in column 3 as a
before April 1, 2021, on your original Form CT-1, and you
positive number in column 4. For an example of how to
make any corrections on Form CT-1 X for the year to
report amounts in columns 1–4, see the instructions for
amounts used to figure this credit, you’ll need to refigure
line 19, earlier.
the amount of the credit using Worksheet 1. You’ll also
use this worksheet to figure this credit if you’re claiming For more information about the employee retention
the credit for the first time on Form CT-1 X. For more credit for qualified compensation paid after March 12,
information about the credit for qualified sick and family 2020, and before January 1, 2021, see Notice 2021-20.
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
recovery startup business could also claim the employee Be sure to explain the reasons for this correction on
retention credit for compensation paid after September line 43.
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 to qualified compensation for the employee retention
year to amounts used to figure this credit, you’ll need to credit are reported on Form CT-1 X, line 31. Adjustments
refigure the amount of the credit using Worksheet 2. You’ll to qualified health plan expenses allocable to the
also use 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,
Instructions for Qualified Compensation Paid After and before January 1, 2022, you'll need to refigure the
June 30, 2021, and Before January 1, 2022 amount of the credit using Worksheet 4. You'll also use
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
businesses, as defined in section 3134(c)(5). Thus, for for Leave Taken After March 31, 2021, and
compensation paid after September 30, 2021, and before Before October 1, 2021
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
If you're correcting the nonrefundable portion of the column 1. In column 2, enter the amount you originally
employee retention credit for qualified compensation paid reported or as previously corrected. In column 3, enter the
after June 30, 2021, and before January 1, 2022, that you difference between columns 1 and 2. For more
reported on Form CT-1, line 17a, enter the total corrected information about the credit for qualified sick and family
amount from Worksheet 4, Step 2, line 2h, in column 1. In leave compensation, go to IRS.gov/PLC.
column 2, enter the amount you originally reported or as
previously corrected. In column 3, enter the difference For corrections to a 2021 or 2022 Form CT-1, line 17b,
between columns 1 and 2. the credit for qualified sick and family leave compensation
is only available for compensation paid in 2021 or 2022
with respect to leave taken after March 31, 2021, and

Instructions for Form CT-1 X (Rev. 3-2023) -15-

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before October 1, 2021. If you're correcting a year before 21. Subtotal
2021, don't enter any amount on line 20b. Combine the amounts from column 4 on lines 6–20c and
Copy the amount in column 3 to column 4. However, to enter the result on line 21.
properly show the amount as a credit or balance due item, Example. You entered “-500.00” in column 4 of line 6,
enter a positive number in column 3 as a negative number “-100.00” in column 4 of line 7, and “1,400.00” in column 4
in column 4 or a negative number in column 3 as a of line 18. Combine these amounts and enter “800.00” in
positive number in column 4. For an example of how to column 4 of line 21.
report amounts in columns 1–4 for an employment tax
credit, see the instructions for line 19, earlier. Line 6 -500.00
Be sure to explain the reasons for this correction on Line 7 -100.00
line 43. Line 18 + 1,400.00
Line 21 800.00
20c. Nonrefundable Portion of COBRA Premium
Assistance Credit
The COBRA premium assistance is available for periods
of coverage beginning on or after April 1, 2021, through 22. Deferred amount of the Tier 1 Employer Tax
periods of coverage beginning on or before September Use Form CT-1 X, line 22, if you need to correct the
30, 2021. For more information, see Credit for COBRA deferred amount of the Tier 1 Employer tax that you
premium assistance payments is limited to periods of reported on your 2020 Form CT-1, line 21. Enter the total
coverage beginning on or after April 1, 2021, through corrected amount in column 1. In column 2, enter the
periods of coverage beginning on or before September amount you originally reported or as previously corrected
30, 2021 under What's New. Use line 20c only for by you or the IRS. In column 3, enter the difference
corrections to a 2021 or 2022 Form CT-1. between columns 1 and 2.

Premium payees that receive an election from an Copy the amount in column 3 to column 4. However,
TIP assistance eligible individual are entitled to the because an increase to the deferred amount of Tier 1
COBRA premium assistance credit for premiums Employer tax defers the payment due, to properly show
not paid during the quarter in which the election is the amount as a deferral of payment, enter a positive
received. Premium payees don’t file a Form CT-1 X for number in column 3 as a negative number in column 4. A
premium assistance even if the coverage is retroactive to decrease to the deferred amount of the Tier 1 Employer
a prior quarter. See Notice 2021-31 for more information. tax decreases the payment you can defer and must be
shown as a balance due item; therefore, to properly show
If you’re correcting the nonrefundable portion of the the amount as a balance due item, enter a negative
COBRA premium assistance credit that you reported on number in column 3 as a positive number in column 4.
Form CT-1, line 17c, enter the total corrected amount from
Worksheet 5, Step 2, line 2g, in column 1. In column 2, If you’re filing Form CT-1 X to increase the amount of
enter the amount you originally reported or as previously the Tier 1 Employer tax (Form CT-1 X, line 6) and Tier 1
corrected. In column 3, enter the difference between Employer tax—Sick pay (Form CT-1 X, line 13) on
columns 1 and 2. compensation paid on or after March 27, 2020, and before
Copy the amount in column 3 to column 4. However, to January 1, 2021, so that there is an additional amount of
properly show the amount as a credit or balance due item, Tier 1 Employer tax that hasn’t yet been paid, and hasn’t
enter a positive number in column 3 as a negative number yet been deferred, then you may use Form CT-1 X to
in column 4 or a negative number in column 3 as a increase the amount of the deferred Tier 1 Employer tax
positive number in column 4. For an example of how to originally reported on Form CT-1, line 21. If you’re filing
report amounts in columns 1–4 for an employment tax Form CT-1 X to decrease the amount of Tier 1 Employer
credit, see the instructions for line 19, earlier. tax on compensation paid on or after March 27, 2020, and
before January 1, 2021, so that there is a decrease in the
Be sure to explain the reasons for this correction on amount of Tier 1 Employer tax that is eligible for deferral,
line 43. then you must use Form CT-1 X to decrease the amount
of the deferred Tier 1 Employer tax originally reported on
20d. Number of Individuals Provided COBRA Form CT-1, line 21, if the decrease in compensation
Premium Assistance causes the amount you originally deferred to exceed the
Use line 20d only for corrections to a 2021 or 2022 Form amount that is now eligible for deferral. Otherwise, you
CT-1. 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.

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The deferred amount of the Tier 1 Employer tax was tax, see Notice 2020 65, 2020 38 I.R.B. 567, available at ‐ ‐
only available for deposits and payments due on or after IRS.gov/irb/2020-38_IRB#NOT-2020-65; and Notice
March 27, 2020, and before January 1, 2021, as well as 2021-11, 2021-06 I.R.B. 827, available at IRS.gov/irb/
deposits and payments due after January 1, 2021, that 2021-06_IRB#NOT-2021-11.
were required for compensation paid during the
Be sure to explain the reasons for any corrections on
applicable period. Generally, 50% of the deferred
line 43.
amounts were required to be paid by December 31, 2021,
and the other 50% was required to be paid by December 24. Refundable Portion of Credit for Qualified
31, 2022. Because both December 31, 2021, and
Sick and Family Leave Compensation for Leave
December 31, 2022, were nonbusiness days, payments
made on the next business day were considered timely. Taken After March 31, 2020, and Before April 1,
Any payments or deposits you made before December 2021
31, 2021, were first applied against your payment due on If you’re correcting the refundable portion of the credit for
December 31, 2021, and then applied against your qualified sick and family leave compensation for leave
payment due on December 31, 2022. For more taken after March 31, 2020, and before April 1, 2021, that
information about the deferral of employment tax deposits you reported on Form CT-1, line 23, enter the total
and payments, including when the deferral must be paid, corrected amount from Worksheet 1, Step 2, line 2k, in
go to IRS.gov/ETD. column 1. In column 2, enter the amount you originally
Be sure to explain the reasons for any corrections on reported or as previously corrected. In column 3, enter the
line 43. difference between columns 1 and 2. For more
information about the credit for qualified sick and family
23. Deferred Amount of the Tier 1 Employee Tax leave compensation, go to IRS.gov/PLC.
Use Form CT-1 X, line 23, if you need to correct the For corrections to a 2020 Form CT-1, line 23, the credit
deferred amount of the Tier 1 Employee tax that you for qualified sick and family leave compensation is only
reported on your 2020 Form CT-1, line 22. Enter the total available for compensation paid with respect to leave
corrected amount in column 1. In column 2, enter the taken after March 31, 2020, and before January 1, 2021.
amount you originally reported or as previously corrected For corrections to a 2021 or 2022 Form CT-1, line 23, the
by you or the IRS. In column 3, enter the difference credit for qualified sick and family leave compensation is
between columns 1 and 2. only available for compensation paid in 2021 or 2022 with
Copy the amount in column 3 to column 4. However, respect to any leave taken after March 31, 2020, and
because an increase to the deferred amount of Tier 1 before April 1, 2021. If you're correcting a year before
Employee tax defers the payment due, to properly show 2020, don't enter any amount on line 24.
the amount as a deferral of payment, enter a positive Copy the amount in column 3 to column 4. However, to
number in column 3 as a negative number in column 4. A properly show the amount as a credit or balance due item,
decrease to the deferred amount of the Tier 1 Employee enter a positive number in column 3 as a negative number
tax decreases the payment you can defer and must be in column 4 or a negative number in column 3 as a
shown as a balance due item; therefore, to properly show positive number in column 4. For an example of how to
the amount as a balance due item, enter a negative report amounts in columns 1–4, see the instructions for
number in column 3 as a positive number in column 4. line 19, earlier.
You may only correct the amount of the deferred Tier 1 Be sure to explain the reasons for this correction on
Employee tax if the amount originally reported on Form line 43.
CT-1, line 22, isn’t the amount you actually deferred (for
example, you incorrectly reported the amount that you 25a. Refundable Portion of Employee Retention
actually deferred). If you already paid the correct amount Credit
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 nonbusiness day, payments made on
January 3, 2022, were considered timely. For more
information about the deferral of employee social security

Instructions for Form CT-1 X (Rev. 3-2023) -17-

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

Be sure to explain the reasons for this correction on Corrections to Form CT-1, Line 26
line 43.
Form CT-1 X doesn't include a line to correct amounts
25b. Refundable Portion of Credit for Qualified reported on Form CT-1, line 26, for the total advances
received from filing Form(s) 7200 for the year. If a
Sick and Family Leave Compensation for Leave
discrepancy exists between the amount reported on Form
Taken After March 31, 2021, and Before October CT-1 and the amount of advance payments issued, the
1, 2021 IRS will generally correct the amount reported on Form
If you’re correcting the refundable portion of the credit for CT-1, line 26, to match the amount of advance payments
qualified sick and family leave compensation for leave issued.

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26. Total Lines 27–40
Combine the amounts from column 4 on lines 21–25c and For lines 27–40, you’ll only enter amounts in columns 1, 2,
enter the result on line 26. and 3. These lines don’t have an entry space for column 4
because these adjustments don’t directly result in an
Your credit. If the amount entered on line 26 is less than
increase or decrease to your tax. The amounts entered on
zero, for example, “-115.00,” you have a credit because
lines 27–38 are amounts that you use on Worksheets 1–5,
you overreported your RRTA taxes.
as applicable, to figure your credits. If you reported an
• If you checked the box on line 1, include this amount on
incorrect amount on lines 30–43 on your original Form
Form CT-1, line 20 (“Total railroad retirement tax
CT-1, then you’ll use lines 27–40 of Form CT-1 X to report
deposits”) for the year during which you filed Form CT-1
the correction. You’ll also use these lines to report
X. Don’t make any changes to your Record of Railroad
amounts if you’re claiming any credits for the first time on
Retirement Tax Liability in Part II of Form CT-1 or on Form
Form CT-1 X. Use Worksheets 1–5, as applicable, to
945-A, unless you were assessed an FTD penalty. For
refigure your credits based on the corrected amounts
more information, see the Form 945-A instructions. The
reported in column 1. Be sure to explain the reasons for
amounts reported on the record should reflect your actual
your corrections to lines 27–40 on line 43.
tax liability for the period.
• If you checked the box on line 2, you’re filing a claim for 27. Qualified Sick Leave Compensation for
refund or abatement of the amount shown.
Leave Taken After March 31, 2020, and Before
If your credit is less than $1, we will send a refund or April 1, 2021
apply it to your next return only if you ask us in writing to
do so. If you’re correcting the qualified sick leave compensation
for leave taken after March 31, 2020, and before April 1,
Amount you owe. If the amount entered on line 26 is a 2021, that you reported on Form CT-1, line 30, enter the
positive number, you must pay the amount you owe by total corrected amount for all employees in column 1. In
the time you file Form CT-1 X. You may not use any column 2, enter the amount you originally reported on
credit that you show on another Form CT-1 X to pay the Form CT-1, line 30, or as previously corrected. In column
amount you owe, even if you filed for the amount you owe 3, enter the difference between columns 1 and 2.
and the credit at the same time. Qualified sick leave compensation reported on this line is
If you owe tax and are filing a timely Form CT-1 X, don’t compensation (determined without regard to the
file an amended Form 945-A unless you were assessed exclusions under section 3231(e)(1)) paid under the
an FTD penalty caused by an incorrect, incomplete, or Emergency Paid Sick Leave Act (EPSLA) as enacted
missing Form 945-A. Don’t include the tax increase under the Families First Coronavirus Response Act
reported on Form CT-1 X on any amended Form 945-A (FFCRA) and as amended by the COVID-related Tax
you file. Relief Act of 2020. Enter the corrected amount from
If you owe tax and are filing a late Form CT-1 X, that is, column 1 on Worksheet 1, Step 2, line 2a.
after the due date for Form CT-1 for the period in which
28. Qualified Health Plan Expenses Allocable to
you discovered the error, you must file an amended Form
945-A with the Form CT-1 X. Otherwise, the IRS may Qualified Sick Leave Compensation for Leave
assess an “averaged” FTD penalty. The total tax reported Taken After March 31, 2020, and Before April 1,
on Form 945-A, line M, must match the corrected tax 2021
(Form CT-1, line 19 (line 15 for years before 2020), If you’re correcting the qualified health plan expenses
combined with any correction reported on Form CT-1 X, allocable to qualified sick leave compensation for leave
line 21) for the year, less any previous abatements and taken after March 31, 2020, and before April 1, 2021, that
interest-free tax assessments. you reported on Form CT-1, line 31, enter the total
Payment methods. You may pay the amount you owe corrected amount for all employees in column 1. In
on line 26 electronically using the Electronic Federal Tax column 2, enter the amount you originally reported or as
Payment System (EFTPS) or by a check or money order. previously corrected. In column 3, enter the difference
• The preferred method of payment is EFTPS. For more between columns 1 and 2. Enter the corrected amount
information, go to EFTPS.gov or call 800-555-4477. To from column 1 on Worksheet 1, Step 2, line 2b.
contact EFTPS using Telecommunications Relay
Services (TRS) for people who are deaf, hard of hearing, 29. Qualified Family Leave Compensation for
or have a speech disability, dial 711 and then provide the Leave Taken After March 31, 2020, and Before
TRS assistant the 800-555-4477 number above or April 1, 2021
800-733-4829. Additional information about EFTPS is
If you’re correcting the qualified family leave
also available in Pub. 966.
compensation for leave taken after March 31, 2020, and
• If you pay by check or money order, make it payable to
before April 1, 2021, you reported on Form CT-1, line 32,
“United States Treasury.” On your check or money order,
enter the total corrected amount for all employees in
be sure to write your EIN, “Form CT-1 X,” and the year
column 1. In column 2, enter the amount you originally
corrected.
reported on Form CT-1, line 32, or as previously
You don’t have to pay if the amount you owe is less corrected. In column 3, enter the difference between
than $1. columns 1 and 2. Qualified family leave compensation
reported on this line is compensation (determined without
regard to the exclusions under section 3231(e)(1)) paid

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

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

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Part 4: Explain Your Corrections for You may report the information in paragraph form. The
following paragraph is an example.
the Calendar Year You’re Correcting “The $1,000 difference shown in column 3 of lines 6
and 7 was discovered on May 15, 2023, during an internal
41. Corrections of Both Underreported and
payroll audit. We discovered that we included $1,000 of
Overreported Amounts compensation for one of our employees twice. This
Check the box on line 41 if any corrections you entered on correction removes the reported compensation that was
lines 6–20d, 22–25c, or 27–40 in column 3 reflect both never paid.”
underreported and overreported amounts.
Part 5: Sign Here
Example. If you had an increase to Tier 1 Employer
compensation of $15,000 for Nathan Smith and a You must complete all five pages of Form CT-1 X and sign
decrease to Tier 1 Employer compensation of $5,000 for it on page 5. If you don’t sign, the processing of Form
Leah Green, you would enter $10,000 on line 6, column 3. CT-1 X will be delayed.
That $10,000 represents the net change resulting from
corrections. Who must sign the Form CT-1 X? The following
persons are authorized to sign the return for each type of
On line 43, you must explain the reason for both the business entity.
$15,000 increase and the $5,000 decrease. Sole proprietorship—The individual who owns the
•
business.
42. Did You Reclassify Any Workers?
• Corporation (including a limited liability company
Check the box on line 42 if you reclassified any workers to (LLC) treated as a corporation)—The president, vice
be independent contractors or nonemployees. Also check president, or other principal officer duly authorized to sign.
this box if the IRS (or you) determined that workers you • Partnership (including an LLC treated as a
treated as independent contractors or nonemployees partnership) or unincorporated organization—A
should be classified as employees. On line 43, provide a responsible and duly authorized partner, member, or
detailed reason why any worker was reclassified. officer having knowledge of its affairs.
Return not filed because you didn’t treat any workers • Single-member LLC treated as a disregarded entity
as employees. If you didn’t previously file Form CT-1 for federal income tax purposes—The owner of the
because you mistakenly treated all workers as LLC or a principal officer duly authorized to sign.
independent contractors or as nonemployees, file a Form • Trust or estate—The fiduciary.
CT-1 for each delinquent year. A duly authorized agent of the taxpayer may also sign
Write “Misclassified Employees” in bold letters Form CT-1 X if a valid power of attorney has been filed.
across the top margin of page 1 of each Form CT-1. Alternative signature method. Corporate officers or
Complete Form CT-1 using the Instructions for Form duly authorized agents may sign Form CT-1 X by rubber
CT-1. Attach a Form CT-1 X to each Form CT-1. stamp, mechanical device, or computer software
Complete the top of Form CT-1 X, including the date you program. For details and required documentation, see
discovered the error, and provide a detailed explanation Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at
on line 43. IRS.gov/irb/2005-28_IRB#RP-2005-39.

43. Explain Your Corrections Paid Preparer Use Only
Treasury regulations require you to explain in detail the A paid preparer must sign Form CT-1 X and provide the
grounds and facts relied upon to support each correction. information in the Paid Preparer Use Only section of Part
On line 43, describe in detail each correction you entered 5 if the preparer was paid to prepare Form CT-1 X and
in column 4 on lines 6–20d and 22–25c. Also use line 43 isn’t an employee of the filing entity. Paid preparers must
to describe corrections made on lines 27–40. If you need sign paper returns with a manual signature. The preparer
more space, attach additional sheets, but be sure to write must give the employer the return to file with the IRS and
your name, EIN, “Form CT-1 X,” and the calendar year include a copy of the return for the employer's records.
you’re correcting on the top of each sheet.
If you’re a paid preparer, write your Preparer Tax
You must describe the events that caused the Identification Number (PTIN) in the space provided.
underreported or overreported amounts. Explanations Include your complete address. If you work for a firm, write
such as “RRTA compensation was overstated,” the firm's name and the EIN of the firm. You can apply for
“administrative/payroll errors were discovered,” or “taxes a PTIN online or by filing Form W-12. For more
were not withheld” are insufficient and may delay the information about applying for a PTIN online, go to
processing of your Form CT-1 X because the IRS may IRS.gov/PTIN. You can’t use your PTIN in place of the EIN
need to ask for a more complete explanation. of the tax preparation firm.
Generally, you’re not required to complete this section
Provide the following information in your explanation of
if 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.

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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. 3-2023)                    -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, enter 
           the amount from Worksheet 1, Step 1, line 1c, and go to Step 2. If you’re not 
           claiming a credit for qualified sick and family leave compensation for leave taken 
           after March 31, 2020, and before April 1, 2021, continue by completing 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. 3-2023)

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

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. 3-2023)                           -25-

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

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, 
           enter the amount from Worksheet 3, Step 1, line 1c, and go to Step 2. If you’re not 
           claiming a credit for qualified sick and family leave compensation for leave taken 
           after March 31, 2021, and before October 1, 2021, continue by completing 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. 3-2023)

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

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, enter the amount from Worksheet 3, Step 1, 
           line 1c, or Worksheet 4, line 1a or 1d (as applicable). If you’re not claiming either of these 
           credits this year, continue by completing 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. 3-2023)           -27-

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How Can You Get Forms, instructions must be retained as long as their contents
may become material in the administration of any Internal
Instructions, and Publications From Revenue law. Generally, tax returns and return
information are confidential, as required by section 6103.
the IRS?
The time needed to complete and file Form CT-1 X will
You can download or print some of the forms and
vary depending on individual circumstances. The
publications you may need on IRS.gov/Forms.
estimated average time is:
Otherwise, you can go to IRS.gov/OrderForms to
place an order and have forms mailed to you. The IRS will
process your order for forms and publications as soon as Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . 39 hr., 13 min.
possible. Don’t resubmit requests you’ve already sent us. Learning about the law or the form . . . . . . . . . 1 hr., 12 min.
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
with these laws and to allow us to figure and collect the send us comments from IRS.gov/FormComments. Or you
right amount of tax. can write to the Internal Revenue Service, Tax Forms and
Publications Division, 1111 Constitution Ave. NW,
You’re not required to provide the information IR-6526, Washington, DC 20224. Don’t send Form CT-1
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-28- Instructions for Form CT-1 X (Rev. 3-2023)

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