The “Total” section is listed as question #27 under Part 3 of Form 941-X, which is needed to claim the employee retention tax credit. Instructions are below for the Total section.
Part 3: Enter the corrections for this quarter. If any line doesn’t apply, leave it blank. (continued)
27. Total. Combine the amounts on lines 23 through 26c of Column 4
If line 27 is less than zero:
- If you checked line 1, this is the amount you want applied as a credit to your Form 941 or 941-SS for the tax period in which you’re filing this form. (If you’re currently filing a Form 944, Employer’s ANNUAL Federal Tax Return, see the instructions.)
- If you checked line 2, this is the amount you want refunded or abated. If line 27 is more than zero, this is the amoun
If line 27 is more than zero, this is the amount you owe. Pay this amount by the time you file this return. For information on how to pay, see Amount you owe in the instructions.
Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund
Part 3, “27. Total“ from Form 941X published by the Department of the Treasury – Internal Revenue Service (IRS), OMB No. 1545-0029, revised in April 2022.
Instructions for Form 941-X:
Combine the amounts from column 4 on lines 23–26c and enter the result on line 27.
Your credit. If the amount entered on line 27 is less than zero, for example, “-115.00,” you have a credit because you overreported your federal employment taxes.
- If you checked the box on line 1, include this amount on the “Total deposits” line of Form 941 for the quarter during which you filed Form 941-X. If you currently file Form 944 because your filing requirement changed, include this amount on the “Total deposits” line of Form 944 for the year during which you filed Form 941-X. Don’t make any changes to your record of federal tax liability reported on Form 941, line 16, or Schedule B (Form 941) if your Form 941-X is filed timely. The amounts reported on the record should reflect your actual tax liability for the period.
- If you checked the box on line 2, you’re filing a claim for refund or abatement of the amount shown.
If your credit is less than $1, we will send a refund or apply it only if you ask us in writing to do so.
Amount you owe. If the amount on line 27 is a positive number, you must pay the amount you owe by the time you file Form 941-X. You may not use any credit that you show on another Form 941-X to pay the amount you owe, even if you filed for the amount you owe and the credit at the same time.
If you owe tax and are filing a timely Form 941-X, don’t file an amended Schedule B (Form 941) unless you were assessed an FTD penalty caused by an incorrect, incomplete, or missing Schedule B (Form 941). Don’t include the tax increase reported on Form 941-X on any amended Schedule B (Form 941) you file.
If you owe tax and are filing a late Form 941-X, that is, after the due date for Form 941 for the quarter in which you discovered the error, you must file an amended Schedule B (Form 941) with the Form 941-X. Otherwise, the IRS may assess an “averaged” FTD penalty. The total tax reported on the “Total liability for the quarter” line of Schedule B (Form 941) must match the corrected tax (Form 941, line 12, combined with any correction reported on Form 941-X, line 23) for the quarter, less any previous abatements and interest-free tax assessments.
Payment methods. You may pay the amount you owe on line 27 electronically using the Electronic Federal Tax Payment System (EFTPS), by credit or debit card, or by a check or money order.
- The preferred method of payment is EFTPS. For more information, go to EFTPS.gov, or call EFTPS Customer Service at 800-555-4477 or 800-733-4829 (TDD) toll free. Additional information about EFTPS is also available in Pub. 966.
- To pay by credit or debit card, go to IRS.gov/ PayByCard. Your payment will be processed by a payment processor who will charge a processing fee.
- If you pay by check or money order, make it payable to “United States Treasury.” On your check or money order, be sure to write your EIN, “Form 941-X,” the calendar quarter you corrected (for example, “Quarter 2”), and the calendar year of the quarter you corrected.
You don’t have to pay if the amount you owe is less than $1.
Previously assessed FTD penalty. If line 27 reflects overreported tax and the IRS previously assessed an FTD penalty, you may be able to reduce the penalty. For more information, see the Instructions for Schedule B (Form 941).
Lines 28 – 40
For lines 28 – 31a and lines 32 – 40, you’ll only enter amounts in columns 1, 2, and 3. These lines don’t have an entry space for column 4 because these adjustments don’t directly result in an increase or decrease to your tax. The amounts entered on lines 28 – 31a and lines 32 – 40 are amounts that you use in Worksheets 1 – 5, as applicable, to figure your credits. If you reported an incorrect amount on lines 19–28 on your original Form 941, then you’ll use lines 28 – 31a and lines 32 – 40 of Form 941‐X to report the correction. Use Worksheets 1 – 5, as applicable, to refigure your credits based on the corrected amounts reported in column 1. For details on how to complete line 31b, see the instructions for line 31b, later. Be sure to explain the reasons for your corrections on line 43.
Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund
Instructions for Part 3, “27. Total“ came from the IRS Instructions for Form 941-X published by the Internal Revenue Service (IRS) Department of the Treasury, revised in April 2022.
Conclusion and Summary on 941-X: 27. Total, Form Instructions
The “Total” section is just one of forty three detailed questions and calculations you must complete correctly on the 941X IRS Form. Listed as question #27 under Part 3 of the 941X, be sure to answer the Total question #27 correctly.
Help Completing / Filing IRS Form 941-X
Disaster Loan Advisors can assist your business in filing an amended Form 941 Employer’s Quarterly Federal Tax Return (for 2020 and 2021), which is IRS Form 941-X Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund.
This tax form is required to be filled out correctly and filed for each qualifying quarter in 2020 and 2021 to ensure your business claims the maximum Employee Retention Credit (ERC) / Employee Retention Tax Credit (ERTC).
– Did you calculate your company’s maximum ERC Tax Credit correctly?
– Are you claiming all the ERC Credit for each qualifying quarter?
– Are you maximizing the total amount of ERC Credit your company qualifies for?
– Need a professional set of eyes to ensure you filled out your form 941X correctly?
Flexible and Professional ERC Consulting Services
There are several flexible options for you. We can review, prepare, and / or file your 941-X Forms for you, or with you.
– Do-It-Yourself (DIY) and have us review your work.
– Done-With-You (DWY) and let’s collaborate together.
– Done-For-You (DFY) and we handle it all for you, from start to finish.
– Or, Consult-With-You to customize to your exact needs.
Our professional ERC fee and pricing structure is very reasonable in comparison.
We DO NOT charge a percentage (%) of your ERC Refund like some companies are charging. Some ERC firms out there are charging upwards of 25% to 35% of your ERC refund!
There is nothing wrong with charging %’s. Some company ERC calculations and filings are highly complicated and require a lot of work, however, there is no need for you to potentially pay excessive fees for the same quality work.
If you are looking for an ERC Company that believes in providing professional ERC Services and value for small business owners, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors is a good fit for you.
Form 941-X and the ERC program can be very confusing as it relates to your specific business situation. Our fee structure is fair and reasonable for the same or better level of ERC service.
Schedule Your Form 941-X Consultation to have peace of mind you are calculating the largest amount of employee retention tax credit your company may claim.
How to Claim the Employee Retention Tax Credit (ERC / ERTC) and Receive Up to a $26,000 Refund Per Employee
Disaster Loan Advisors can assist your business with the complex and confusing Employee Retention Credit (ERC) and Employee Retention Tax Credit (ERTC) program.
Depending on eligibility, business owners and companies can receive up to $26,000 per employee based on the number of W2 employees you had on the payroll in 2020 and 2021.
The ERC / ERTC Program is a valuable tax credit you can claim. This is money you have already paid to the IRS in payroll taxes for your W2 employees.
Schedule Your Free Employee Retention Credit Consultation to see what amount of employee retention tax credit your company qualifies for.
Cover Image Credit: Irs.gov / Form 941-X / Disaster Loan Advisors.