Publication 926 - Household Employer'S Tax Guide - Internal Revenue Service

correcting an overpayment and are filing the corrected

How Can You Correct

Schedule H within 90 days of the expiration of the period of

limitations, you can only claim a refund of the overpay-

Schedule H?

ment.

Adjust the overpayment. If the corrected Schedule H

If you discover that you made an error on a Schedule H (or

is filed with a Form 1040X or an amended Form 1041,

Anexo H-PR), the forms used to correct the error depend

adjust your return by indicating on line 22 of the Form

on whether the Schedule H was attached to another form

1040X or on line 29a of the Form 1041 that you would like

or whether it was filed by itself.

the overpayment applied to your estimated taxes on Form

Schedule H attached to another form. If you discover

1040, Form 1040NR, Form 1040-PR, Form 1040-SS, or

an error on a Schedule H that you previously filed with

Form 1041 for the year in which you are filing the corrected

Form 1040, Form 1040NR, or Form 1040-SS, file Form

Schedule H. If the corrected Schedule H is filed as a

1040X and attach a corrected Schedule H. If you filed

stand-alone return, adjust your return by writing “AD-

Formulario 1040-PR, file a Form 1040X and attach a cor-

JUSTED” (or “CORREGIDO”) in the top margin (in dark,

rected Anexo H-PR. If you discover an error on a Schedule

bold letters). If you adjust your return, you will not receive

H that you previously filed with Form 1041, file an

interest on your overpayment. If the corrected Schedule H

“amended” Form 1041 and attach a corrected Schedule H.

will be filed within 90 days of the expiration of the refund

You discovered (that is, ascertained) the error when you

period of limitations, you may not adjust the return and

had enough information to be able to correct the error.

must claim a refund for the overpayment. You may not

Write “CORRECTED” (or “CORREGIDO”) and the date

adjust your return to correct overpayments of FUTA tax.

you discovered the error in the top margin of your cor-

Claim for refund process. If the corrected Schedule H

rected Schedule H (or Anexo H-PR), (in dark, bold letters).

is filed with a Form 1040X or an amended Form 1041,

In addition, explain the reason for your correction and the

claim a refund by indicating that you would like the over-

date the error was discovered in Part III of Form 1040X or

payment refunded to you on line 21 of the Form 1040X or

in a statement attached to the amended Form 1041.

line 29b of the Form 1041. If the corrected Schedule H is

filed as a stand-alone return, claim a refund by writing

Schedule H filed by itself. If you discover an error on a

“REFUND” (or “REEMBOLSO”) in the top margin (in dark,

Schedule H (or Anexo H-PR) that you filed as a

bold letters). You will receive interest on any overpayment

stand-alone return, file another stand-alone Schedule H

refunded, unless the overpayment is for FUTA tax because

with the corrected information. You discovered (that is,

you were entitled to increased credits for state contribu-

ascertained) the error when you had enough information to

tions.

be able to correct the error. Write “CORRECTED” (or

“CORREGIDO”) and the date you discovered the error in

Required repayment or consent. If you previously over-

the top margin of your corrected Schedule H (or Anexo

reported social security and Medicare taxes, you may

H-PR), (in dark, bold letters). In addition, explain the rea-

adjust your overpayment only after you have repaid or

son for your correction and the date the error was discov-

reimbursed your employees in the amount of the overcol-

ered in Part III of Form 1040X or in a statement attached to

lection of employee tax. You reimburse your employees by

the corrected Schedule H. If you have an overpayment,

applying the overwithheld amount against taxes to be

also write “ADJUSTED” (or “CORREGIDO”) or “REFUND”

withheld on future wages. You may claim a refund for the

(or “REEMBOLSO”) in the top margin, depending on

overpayment only after you have repaid or reimbursed

whether you want to adjust your overpayment or claim a

your employees in the amount of the overcollection or you

refund. (See Overpayment of tax, later.)

have obtained consents from your employees to file the

claim for refund for the employee tax. Include a statement

When to file. File a corrected Schedule H when you

that you repaid or reimbursed your employees, or obtained

discover an error on a previously filed Schedule H. If you

their written consents in the case of a claim for refund, in

are correcting an underpayment, file a corrected Schedule

Part III of Form 1040X or in a statement attached to the

H no later than the due date of your next tax return

amended Form 1041 or the stand-alone corrected Sched-

(generally, April 15 of the following calendar year) after you

ule H.

discover the error. If you are correcting an overpayment,

file a corrected Schedule H within the refund period of

Filing required Forms W-2 or Forms W-2c. Whether

limitations (generally 3 years from the date your original

you previously underreported tax or overreported tax, you

form was filed or within 2 years from the date you paid the

will generally be required to file Form W-2, Wage and Tax

tax, whichever is later).

Statement, or their territorial equivalents (if none was pre-

Underpayment of tax. You must pay any underpayment

viously filed), or Form W-2c, Corrected Wage and Tax

Statement, to reflect the changes reported on your cor-

of social security and Medicare taxes by the time you file

the corrected Schedule H. Generally, by filing on time and

rected Schedule H.

paying by the time you file the return, you will not be

Additional information. For more information about cor-

charged interest (and will not be subject to failure-to-pay or

recting errors on a previously filed Schedule H, see page 4

estimated tax penalties) on the balance due. However,

of Form 944-X, Form 944-X: Which process should you

underreported FUTA taxes will be subject to interest.

use? (substitute “Schedule H” for “Form 944-X”) and the

Overpayment of tax. You may either adjust or claim a

Overview of New Processes section in the Instructions for

refund of an overpayment of social security and Medicare

Form 944-X (or Formulario 944-X (PR)). Also, visit

taxes on a previously filed Schedule H. However, if you are

IRS.gov.

Publication 926 (March 2012)

Page 11

Publication 926 - Household Employer'S Tax Guide - Internal Revenue Service - 2012 Page 11

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