Instructions For Form 941 - Employer'S Quarterly Federal Tax Return

•

You cannot adjust or claim a refund or credit for any

If line 10 is $2,500 or more, you must deposit the

overpayment of federal income tax that you withheld or

amount by using EFTPS or at an authorized financial

deducted from your employees in a previous year because

institution with Form 8109. The amount shown on line 10

employees use the amount shown on Form W-2 as a credit

must equal the “Total liability for quarter” shown on

when they file their income tax returns.

Form 941, line 15 or the “Total liability for the quarter” shown

on Schedule B (Form 941).

Do not adjust federal income tax withholding for

quarters in previous years unless you do it to correct

For more information on federal tax deposits, see

an administrative error. An administrative error

Depositing Your Taxes on page 3 and section 11 of Pub. 15

CAUTION

happened if the amount you entered on Form 941 was not

(Circular E).

the same amount you actually withheld. For example, when

If you are a semiweekly depositor, you must

the total amount of federal income tax actually withheld was

complete Schedule B (Form 941). If you fail to

not reported correctly on Form 941 because of a

complete and submit Schedule B (Form 941), IRS

mathematical or transposition error, the difference is an

CAUTION

will assert deposit penalties based on available information.

administrative error. The administrative error adjustment

corrects the amounts reported on Form 941 to agree with

11. Total Deposits for This Quarter

the amount actually withheld from the employee. Remember

to attach an explanation of the adjustment.

Enter your deposits for this quarter, including any deposits

that you were required to make to cover prior period

7e. Prior quarters’ social security and Medicare

liabilities resulting from adjustments shown on line 7. Also

taxes. Enter adjustments for prior quarters’ social security

include in the amount shown any overpayment from a

and Medicare taxes. For example, if you made a mistake

previous period that you applied to this return.

when reporting social security and Medicare taxes on

previously filed Forms 941, adjust it here. If you need to

12. Balance Due

report both an underpayment and an overpayment, show

only the net difference.

If line 10 is more than line 11, write the difference in line 12.

Otherwise, see Overpayment below.

If you are adjusting an employee’s social security

TIP

wages, social security tips, or Medicare wages and

You do not have to pay if line 12 is under $1.

tips for a prior year, you must also file Form W-2c,

Generally, you should have a balance due only if your total

Corrected Wage and Tax Statement, and Form W-3c,

taxes after adjustment for advance EIC for the quarter

Transmittal of Corrected Wage and Tax Statements.

(line 10) are less than $2,500. However, see section 11 of

Pub. 15 (Circular E) for information about payments made

7f and 7g. Special additions to federal income tax

under the accuracy of deposits rule.

and Special additions to social security and Medicare.

These lines are reserved for employers with special

You may pay the amount shown on line 12 using EFTPS,

circumstances. Use these lines only if the IRS has sent you

a credit card, a check or money order, or electronic funds

a notice instructing you to do so. You must attach Form

withdrawal (EFW). Do not use a credit card or EFW to pay

941c explaining the tax increase.

taxes that were required to be deposited. For more

7h. TOTAL ADJUSTMENTS. Combine all adjustments

information on paying your taxes with a credit card or EFW,

shown on lines 7a through 7g and enter the result here.

visit the IRS website at and click on the

electronic IRS link.

Total Taxes After Adjustments

If you pay by EFTPS or credit card, file your return using

Combine the amounts shown on lines 6 and 7h and enter

the Without a payment address on page 4 under Where

the result here.

Should You File? and do not file Form 941-V, Payment

9. Advance Earned Income Credit (EIC)

Voucher.

Payments Made to Employees

If you pay by check or money order, make it payable to

the United States Treasury. Enter your EIN, Form 941, and

Enter the amount of the advance earned income credit (EIC)

the tax period on your check or money order. Complete

payments that you made to your employees. Eligible

Form 941-V and enclose with Form 941.

employees may choose to receive part of the EIC as an

advance payment. Those who expect to have a qualifying

If line 10 is $2,500 or more and you have deposited all

child must give you a completed Form W-5 stating they

taxes when due, the balance due on line 12 should be zero.

expect to qualify for the EIC. Once the employee gives you

a signed and completed Form W-5 you must make the

If you do not deposit as required and, instead, pay

advance EIC payments starting with the employee’s next

the taxes with Form 941, you may be subject to a

wage payment. Advance EIC payments are generally made

penalty.

CAUTION

from withheld federal income tax and employee and

employer social security and Medicare taxes.

13. Overpayment

If the amount of your advance EIC payments is more

If line 11 is more than line 10, write the difference in line 13.

than your total taxes after adjustments (line 8) for the

Never make an entry in both lines 12 and 13.

quarter, you may claim a refund of the overpayment or elect

to have the credit applied to your return for the next quarter.

If you deposited more than the correct amount for the

Attach a statement to Form 941 identifying the amount of

quarter, you can choose to have the IRS either refund the

excess payments and the pay periods in which you paid it.

overpayment or apply it to your next return. Check the

appropriate box in line 13. If you do not check either box, we

For more information on advance EIC, see section 10 of

will automatically refund the overpayment. We may apply

Pub. 15 (Circular E) and Pub. 596, Earned Income Credit.

your overpayment to any past due tax account that is shown

10. Total Taxes After Adjustment for

in our records under your EIN.

Advance EIC

If line 13 is under $1, we will send a refund or apply it to

Subtract line 9 from line 8.

your next return only if you ask us in writing to do so.

•

Line 10 is less than $2,500. You may pay the amount

Complete both pages.

with Form 941 or you may deposit the amount. To avoid a

penalty, you must pay the amount in full with a timely filed

You must complete both pages of Form 941 and sign on

return or you must deposit the amount timely.

page 2. An incomplete return may delay processing.

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Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2008 Page 7

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