! the nonrefundable portion of credit for qualified

CAUTION sick and family leave compensation paid in 2020

expired on February 29, 2024, for most employers. Generally, the period of limitations for correcting the nonrefundable portion of credit for qualified sick and family leave compensation paid in 2021 expired on February 28, 2025, for most employers. For more information about the period of limitations, see Is There a Deadline for Filing Form CT-1 X , earlier.

If you’re correcting the nonrefundable portion of the credit for qualified sick and family leave compensation for leave taken after March 31, 2020, and before April 1, 2021, that you reported on Form CT-1, line 16, enter the total corrected amount from Worksheet 1, Step 2, line 2j, in column 1. In column 2, enter the amount you originally reported or as previously corrected. In column 3, enter the difference between columns 1 and 2. For more information about the credit for qualified sick and family leave compensation, go to IRS.gov/PLC .

Copy the amount in column 3 to column 4. However, to properly show the amount as a credit or balance due item, enter a positive number in column 3 as a negative number in column 4 or a negative number in column 3 as a positive number in column 4.

Instructions for Form CT-1 X (Rev. 4-2025) 13

Adjustments to the nonrefundable portion of the

TIP credit for qualified sick and family leave

compensation for leave taken after March 31, 2020, and before April 1, 2021, are reported on Form CT-1 X, line 19, and adjustments to the refundable portion of the credit are reported on Form CT-1 X, line 24. Adjustments to qualified sick leave compensation and qualified family leave compensation for leave taken after March 31, 2020, and before April 1, 2021, are reported on Form CT-1 X, lines 27 and 29, respectively. Adjustments to qualified health plan expenses allocable to qualified sick leave compensation and qualified family leave compensation for leave taken after March 31, 2020, and before April 1, 2021, are reported on Form CT-1 X, lines 28 and 30, respectively. For corrections to 2020 Form CT-1, line 16, if the period of limitations is still open, the credit for qualified sick and family leave compensation is only available for compensation paid with respect to leave taken after March 31, 2020, and before January 1, 2021. For corrections to 2021, 2022, or 2023 Form CT-1, line 16, the credit for qualified sick and family leave compensation is only available for compensation paid in 2021, 2022, or 2023 with respect to any leave taken after March 31, 2020, and before April 1, 2021. If you're correcting a year before 2020 because the period of limitations is still open, don't enter any amount on line 19. If you claimed the credit for qualified sick and family leave compensation for leave taken after March 31, 2020, and before April 1, 2021, on your original Form CT-1, and you make any corrections on Form CT-1 X for the year to amounts used to figure this credit, you’ll need to refigure the amount of the credit using Worksheet 1. You’ll also use this worksheet to figure this credit if you’re claiming the credit for the first time on Form CT-1 X. For more information about the credit for qualified sick and family leave compensation, go to IRS.gov/PLC.

Example—Nonrefundable portion of credit for qualified sick and family leave compensation increased. You originally reported a $1,000 nonrefundable portion of credit for qualified sick and family leave compensation on your 2021 Form CT-1, line 16, but later determined that you understated qualified sick leave compensation eligible for the credit. If your period of limitations is still open, use Worksheet 1 to refigure the correct nonrefundable portion of the credit for qualified sick and family leave compensation and you determine that the correct credit is now $2,000. To correct the error, figure the difference on Form CT-1 X as shown.

Column 1 (corrected amount) 2,000.00 Column 2 (Form CT-1, line 16) - 1,000.00

Column 3 (difference) 1,000.00

To properly show the credit increase as a reduction to your balance, enter the positive number in column 3 as a negative number in column 4. Here is how you would enter the numbers on Form CT-1 X, line 19.

Be sure to explain the reasons for this correction on line 43.

20b. Nonrefundable Portion of Credit for Qualified Sick and Family Leave Compensation for Leave Taken After March 31, 2021, and Before October 1, 2021

Generally, the period of limitations for correcting