Part 4 — Instruction 940 — Instructions for Form 940

If any line in Part 4 doesn’t apply, leave it blank.

12. Total FUTA Tax After Adjustments Add the amounts shown on lines 8, 9, 10, and 11, and enter the result on line 12.

line 8 line 9 line 10

line 11

line 12

Caution: If line 9 is greater than zero, lines 10 and 11 must be zero because they don’t apply.

13. FUTA Tax Deposited for the Year Enter the amount of FUTA tax that you deposited for the year, including any overpayment that you applied from a prior year.

14. Balance Due If line 13 is less than line 12, enter the difference on line 14.

line 12

line 13

line 14

0.013 (your computation rate) $104.00 3. $104.00

4. Subtotal (line 2 + line 3)

$100.00

104.00

$204.00 4. $204.00

5. Credit for paying state unemployment taxes late

5a. Remaining allowable credit (line 1 – line 4)

$1,134.00

204.00

$930.00 5a. $930.00

5b. State unemployment tax paid late 5b. $78.00

5c. Which is smaller, line 5a or line 5b? 5c. $78.00

5d. Allowable credit (for paying late)

$78.00 x 0.900

$70.20 5d. $70.20

6. Your FUTA credit (line 4 + line 5d)

$204.00

70.20

$274.20 6. $274.20

7. Your adjustment (line 1 – line 6)

$1,134.00

274.20

$859.80 7. $859.80

You would enter line 7 from this worksheet on Form 940, line 10.

If line 14 is:

More than $500, you must deposit your tax—see When Must You Deposit Your FUTA Tax , earlier;

• $500 or less, you can deposit your tax, pay your tax by EFT, pay your tax with a credit card or debit card, pay your tax by EFW if filing electronically, or pay your tax by check or money order with your return—for more information on electronic payment options, go to IRS.gov/Pay ; or

Less than $1, you don’t have to pay it.

Caution: If you don’t deposit as required and pay any balance due with Form 940, you may be subject to a penalty.

If you pay by EFT, credit card, or debit card, file your return using the Without a payment address under Where Do You File , earlier. Don’t file Form 940-V, Payment Voucher.

Instructions for Form 940 (2025) 13

What if you can’t pay in full? If you can’t pay the full amount of tax you owe, you can apply for an installment agreement online. You can apply for an installment agreement online if:

Ask your financial institution for the correct routing number to enter on line 15c if:

Your deposit is to a savings account that doesn’t allow you to write checks, or
You can’t pay the full amount shown on line 14,
The total amount you owe is $25,000 or less, and
You can pay the liability in full in 24 months. To apply using the Online Payment Agreement Application, go to IRS.gov/OPA .
The routing number on a deposit slip is different from the routing number on your checks,
Your checks state they’re payable through a financial institution different from the one at which you have your checking account.

Under an installment agreement, you can pay what you owe in monthly installments. There are certain conditions you must meet to enter into and maintain an installment agreement, such as paying the liability within 24 months, and making all required deposits and timely filing tax returns during the length of the agreement.

15d. Type of account. Check the appropriate box for the type of account. Don’t check more than one box. You must check the correct box to ensure your deposit is accepted. If you’re unsure which box to check for the account you wish the deposit to be applied to, consult your financial institution.

15e. Account number. The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank.

If the direct deposit to your account is different from the amount you expected, you’ll receive an explanation in the mail about 2 weeks after your refund is deposited.

Reasons Your Direct Deposit Request Will Be Rejected

If your installment agreement is accepted, you will be charged a fee and you will be subject to penalties and interest on the amount of tax not paid by the due date of the return.

15a. Overpayment If line 13 is more than line 12, enter the difference on line 15a.

line 13

line 12

line 15a

If any of the following apply, your direct deposit request will be rejected and a check will be sent instead.

15b. Choose to have your overpayment applied to your next return or refunded. If you deposited more than the FUTA tax due for the year, you may choose to have us either:

Apply the overpayment to your next return, or
Send you a refund (complete lines 15c–15e for direct deposit).
The name on your account doesn’t match the name on the refund, and your financial institution won’t allow a refund to be deposited unless the name on the refund matches the name on the account.
Your business is a corporation and the receiving financial institution is a foreign bank or a foreign branch of a U.S. bank.

Check the appropriate box on line 15b to tell us which option you select. Check only one box on line 15b. If you don’t check either box or if you check both boxes, we will generally apply the overpayment to your next return. Regardless of any box you check or don’t check, we may apply your overpayment to any past due tax account that is shown in our records under your EIN. If you check the box to have your overpayment refunded but you don’t complete lines 15c–15e for direct deposit, your refund may be delayed.

If line 15a is less than $1, we will send you a refund or apply it to your next return only if you ask for it in writing.

Any numbers or letters on lines 15c–15e are crossed out or whited out.

Direct Deposit

The benefits of a direct deposit include a faster refund, the added security of a paperless payment, and the savings of tax dollars associated with the reduced processing costs. To have your refund direct deposited, you must complete lines 15c–15e.

15c. Routing number. The routing number must be nine digits. The first two digits must be 01 through 12 or 21 through 32. Verify that your financial institution will accept a direct deposit.

Caution: The IRS isn’t responsible for a lost refund if you enter the wrong account information. Check with your financial institution to get the correct routing and account numbers and to make sure your direct deposit will be accepted.