Instructions for Form CT-1 X - Introductory Material


Table of Contents

Future Developments

For the latest information about developments related to Form CT-1 X and its instructions, such as legislation enacted after they were published, go to www.irs.gov/ct1x.

What's New

Correcting compensation (including tips) and sick pay subject to Tier I Employee Additional Medicare Tax withholding.   Beginning in 2013, compensation (including tips) and sick pay subject to Tier I Employee Additional Medicare Tax withholding are reported on Form CT-1, lines 6 and 12. Any errors discovered on a previously filed Form CT-1 are corrected on Form CT-1 X, lines 11 and 17. For more information about Tier I Employee Additional Medicare Tax withholding, see the Instructions for Form CT-1 and go to IRS.gov and enter “Additional Medicare Tax” in the search box. See the instructions for lines 11 and 17 for more information on the types of errors that can be corrected and how the correction is reported on Form CT-1 X.

Tier I Employee tax rate for 2013.   The Tier I Employee tax rate is 6.2% and the Tier I Employer tax rate is 6.2% (12.4% total). In 2011 and 2012, the Tier I Employee tax rate was 4.2% and Tier I Employer tax rate was 6.2% (10.4% total). Be sure to use the correct rate when reporting correct amounts on lines 9 and 15.

Period of limitations to make certain corrections expired.   Generally, you may correct overreported taxes on a 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 date you paid the tax reported on Form CT-1, whichever is later. For purposes of the period of limitations, Form CT-1 is considered filed on the last day in February of the succeeding year if filed before that date.

  The period of limitations to correct the qualified employer's Tier I tax exemption for 2010 and the qualified employer's Tier I tax credit for 2010 expired on February 28, 2014, for most employers. The lines formerly used for these corrections were removed from Form CT-1 X. If the period of limitations for any of these corrections is still open, you will need to file the February 2013 revision of Form CT-1 X. The February 2013 revision of Form CT-1 X is available on IRS.gov.

Retroactive increase in excludible transit benefits for 2012.   The American Taxpayer Relief Act (ATRA) increased the monthly transit benefit exclusion from $125 per participating employee to $240 per participating employee for the period of January 1, 2012, through December 31, 2012. See Notice 2013-8, 2013-7 I.R.B. 486, available at www.irs.gov/irb/2013-07_IRB/ar08.html.


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