Line 1: Wages, tips, and other compensationThe year's amounts that go in box 1 of the Forms W-2, including sick pay paid by your agent. Employers in the territories skip lines 1 and 2 unless employees are subject to U.S. income tax withholding.Click to open the row in the table belowLine 2: Federal income tax withheldIncome tax withheld from wages, tips, taxable fringe benefits and supplemental unemployment benefits, excluding tax withheld by a third-party sick pay payer.Click to open the row in the table belowLine 3: No wages subject to social security or Medicare taxCheck and go to line 5 only if none of the line 1 wages is subject to FICA.Click to open the row in the table belowLine 4a to 4d: Taxable social security and Medicare wages and tipsSocial security wages and tips times 0.124 up to $184,500 per employee for 2026; Medicare wages and tips times 0.029; wages over $200,000 times 0.009 for Additional Medicare Tax. Include reported tips even when you could not withhold.Click to open the row in the table belowLine 4e: Total social security and Medicare taxesColumn 2 of lines 4a to 4d added together.Click to open the row in the table belowLine 5: Total taxes before adjustmentsLine 2 plus line 4e.Click to open the row in the table belowLine 6: Current year's adjustmentsOne line for fractions of cents, third-party sick pay, and uncollected employee FICA on tips and group-term life for former employees. Prior-year errors go on Form 944-X.Click to open the row in the table belowLine 7: Total taxes after adjustmentsLines 5 and 6 combined.Click to open the row in the table belowLine 8: Qualified small business payroll tax creditResearch payroll credit from Form 8974, attached.Click to open the row in the table belowLine 9: Total taxes after adjustments and nonrefundable creditsLine 7 minus line 8, not below zero. This is the figure for the $2,500 test and must equal line 13m or Form 945-A line M.Click to open the row in the table belowLine 10: Total deposits for this yearDeposits plus overpayments applied from a prior year and from Forms 944-X or 941-X filed during the year.Click to open the row in the table belowLine 11: Balance dueLine 9 minus line 10. Paying a required deposit here instead of depositing can draw a penalty.Click to open the row in the table belowLine 12a to 12e: Overpayment, refund election and direct depositApply to the next return or refund; give routing number, account type and account number for direct deposit.Click to open the row in the table belowHover over a line for what goes on it; click to open its row in the table below. On a touch screen, tap the line to jump to the row.
Line 13: Tax liability (Part 2)Under $2,500: check the first box. $2,500 or more: monthly depositors enter liability for each month on 13a to 13l with the total on 13m; semiweekly depositors (including those who crossed $100,000 in a day) complete Form 945-A instead.Click to open the row in the table belowLine 14: Business closed or stopped paying wagesCheck, enter the final date wages were paid and attach the records statement.Click to open the row in the table belowPart 4: Third-party designeePerson and PIN the IRS may contact about processing questions.Click to open the row in the table belowPart 5: SignatureBoth pages must be completed and the return signed by an authorized person.Click to open the row in the table belowWho files Form 944
“You must file annual Form 944 instead of filing quarterly Forms 941 only if the IRS notified you in writing.” The program exists so that employers with annual liability of $1,000 or less “will file and pay these taxes only once a year instead of every quarter”. If you were notified, you must file Form 944 (and not quarterly Forms 941) even if your tax liability for 2026 exceeds $1,000, and you must file it even with nothing to report until you file a final return.
Employers that may not file Form 944: those with only household employees (Schedule H), those with only agricultural employees (Form 943), those notified to file quarterly Forms 941 (including on their own request), and anyone not notified to file Form 944. If you are unsure of your filing requirement, call the IRS at 800-829-4933.
Opting in or out. An employer that expects $1,000 or less for 2027 may ask to file Form 944; as a rule of thumb, $5,000 or less of wages subject to FICA and withholding generally produces $1,000 or less of tax. A notified employer that prefers quarterly returns may ask to file Forms 941. For 2027, call between January 1 and April 1, 2027, or send a written request postmarked between January 1 and March 15, 2027 (Ogden or Cincinnati address, per Rev. Proc. 2009-51). Nothing changes until the IRS sends written notice.
Line by line
| Line | What it is | Notes |
|---|---|---|
| 1 | Wages, tips, and other compensation | The year's amounts that go in box 1 of the Forms W-2, including sick pay paid by your agent. Employers in the territories skip lines 1 and 2 unless employees are subject to U.S. income tax withholding. |
| 2 | Federal income tax withheld | Income tax withheld from wages, tips, taxable fringe benefits and supplemental unemployment benefits, excluding tax withheld by a third-party sick pay payer. |
| 3 | No wages subject to social security or Medicare tax | Check and go to line 5 only if none of the line 1 wages is subject to FICA. |
| 4a to 4d | Taxable social security and Medicare wages and tips | Social security wages and tips times 0.124 up to $184,500 per employee for 2026; Medicare wages and tips times 0.029; wages over $200,000 times 0.009 for Additional Medicare Tax. Include reported tips even when you could not withhold. |
| 4e | Total social security and Medicare taxes | Column 2 of lines 4a to 4d added together. |
| 5 | Total taxes before adjustments | Line 2 plus line 4e. |
| 6 | Current year's adjustments | One line for fractions of cents, third-party sick pay, and uncollected employee FICA on tips and group-term life for former employees. Prior-year errors go on Form 944-X. |
| 7 | Total taxes after adjustments | Lines 5 and 6 combined. |
| 8 | Qualified small business payroll tax credit | Research payroll credit from Form 8974, attached. |
| 9 | Total taxes after adjustments and nonrefundable credits | Line 7 minus line 8, not below zero. This is the figure for the $2,500 test and must equal line 13m or Form 945-A line M. |
| 10 | Total deposits for this year | Deposits plus overpayments applied from a prior year and from Forms 944-X or 941-X filed during the year. |
| 11 | Balance due | Line 9 minus line 10. Paying a required deposit here instead of depositing can draw a penalty. |
| 12a to 12e | Overpayment, refund election and direct deposit | Apply to the next return or refund; give routing number, account type and account number for direct deposit. |
| 13 | Tax liability (Part 2) | Under $2,500: check the first box. $2,500 or more: monthly depositors enter liability for each month on 13a to 13l with the total on 13m; semiweekly depositors (including those who crossed $100,000 in a day) complete Form 945-A instead. |
| 14 | Business closed or stopped paying wages | Check, enter the final date wages were paid and attach the records statement. |
| Part 4 | Third-party designee | Person and PIN the IRS may contact about processing questions. |
| Part 5 | Signature | Both pages must be completed and the return signed by an authorized person. |
Due dates
| What | Due | Notes |
|---|---|---|
| 2026 Form 944 | February 1, 2027 | January 31, 2027 is a Sunday; February 10, 2027 if all deposits were made on time and in full |
| Quarterly deposits (liability $2,500 or more for the year but under $2,500 for the quarter) | Last day of the month after the quarter | Fourth-quarter tax under $2,500 may be paid with the return |
| Monthly schedule deposits (quarter of $2,500 or more) | 15th of the following month | Semiweekly depositors follow the Wednesday and Friday rule |
| Request to file Form 944, or quarterly Forms 941, for 2027 | April 1, 2027 (phone) or March 15, 2027 (postmark) | Window opens January 1, 2027; wait for written IRS notice |
| Former 944 filer now on Form 941: January deposits | March 15 | No FTD penalty on a late January deposit made in full by March 15 |
Deposits
Two different thresholds. The $1,000 figure decides who may file Form 944; the $2,500 figure decides who must deposit. Under the 2026 draft instructions: liability under $2,500 for the year, no deposit required (pay with a timely return, or deposit anyway if unsure); $2,500 or more for the year but under $2,500 for a quarter, deposit by the last day of the month after that quarter, with fourth-quarter tax under $2,500 payable with the return; $2,500 or more for a quarter, deposit monthly or semiweekly under your schedule, and by the next business day after any $100,000 day.
Lookback period. “The lookback period for Form 944 filers is different from the lookback period for Form 941 filers, so your deposit schedule may have changed.” For a Form 943 or 944 filer in the current year or either of the 2 preceding years, it is the second preceding calendar year: calendar 2024 for 2026. $50,000 or less makes you monthly, more makes you semiweekly. A new Form 944 filer is a monthly depositor for its first and second calendar years, subject to the $100,000 next-day rule.
Deposits are made by EFT (EFTPS or the IRS business tax account). Semiweekly Form 944 filers report daily liability on Form 945-A, not Schedule B (Form 941).
Penalties
The deposit penalty tiers of IRC 6656 (2%, 5%, 10%, 15%) and the averaged FTD penalty apply to Form 944 as they do to Form 941: if line 9 is $2,500 or more and line 13 or Form 945-A is missing, uses deposits instead of liabilities, or does not equal line 9, the IRS may average the liability over the year. Late filing and late payment run at 5% and 0.5% per month, each capped at 25%, plus interest; the trust fund recovery penalty is 100% of unpaid withheld taxes, assessable against responsible persons (trust fund recovery penalty).
Since July 2026 (for the 2025 tax year and later periods), the IRS's Automatic Exemption from Penalty (AEP) program, which replaces First Time Abate, applies to Form 944 filers who timely filed and paid for the prior 3 years (or 12 quarters of Form 941 before switching). It covers failure to file, failure to pay and failure to deposit, but not a penalty for failing to deposit by EFT.
Corrections
Correct a filed Form 944 on Form 944-X, filed separately. Underreported tax is due by January 31 of the year after the year you discover the error, without regard to whether you now file Form 941 or Form 944, and is interest free when filed and paid on time. Overreported tax may be credited or claimed as a refund under the adjustment and claim processes described in section 13 of Pub 15 and the Instructions for Form 944-X. Overpayments applied from Form 944-X or Form 941-X go on line 10.
Current-year rounding, sick pay, tip and group-term life adjustments belong on line 6, not on Form 944-X. Wage changes also need Forms W-2c and W-3c.
Where it goes wrong
- Filing Form 941 after being notified to file Form 944, or the reverse. The filing requirement changes only by written IRS notice. Without the notice confirming a requested switch, file the form you were last told to file.
- Assuming no deposits because you are a 944 filer. Liability of $2,500 or more for the year means deposits; a quarter of $2,500 or more means monthly or semiweekly deposits.
- Wrong liability schedule. Line 13 monthly boxes are for monthly depositors only; a semiweekly depositor, or one that became semiweekly on a $100,000 day, completes Form 945-A. Totals must equal line 9.
- W-3 that does not match. The IRS matches Form 944 to the Forms W-2 totaled on Form W-3: income tax withheld, social security wages and tips, and Medicare wages and tips. See CAWR reconciliation.
- EIN and name. Use the EIN and legal name exactly as assigned; report any other EIN used during the year in box h of Form W-3.
Inside the IRS: what happens to Form 944
What the IRS treats as the same as a 941. Form 944 posts to its own annual account, but “All penalties and interest applicable to Form 941 also apply to Form 944, including FTD penalties.” Code and edit describes it as an option to “reduce the burden for the smallest of the small business taxpayers” (IRM 3.11.13.19). Its totals are shared with SSA and matched against your W-2s in CAWR exactly like 941 totals.
Your filing requirement is set by the IRS, not by you. An existing employer files Form 944 only if it asked to and “receives written notice from the IRS to file Form 944.” File the wrong form and it bounces: if you file a 941 in a year you are designated a 944 filer, “the Form 941 unposts,” and the reverse also unposts. The IRS then accepts or deletes the return based on your filing requirement on record and sends Letter 4148C (should have filed 944) or Letter 4086C (should have filed 941). Letter 3007C confirms a change to or from Form 944.
Opting in or out. To change for the current year, the IRS acts on a request when “The taxpayer contact is on or before April 1 or is in correspondence postmarked by March 15th.” After that, a 944 filer who wants out must still file Form 944 for the year.
The CP 250 notices. When a posted 944 shows more than $1,000 of tax on line 7, the IRS moves you back to Form 941:
- CP 250A (return posted early in the year): no longer eligible, file Form 941 quarterly for the current year.
- CP 250B (posted later): file Form 944 this year, but “They will not be eligible to file Form 944 for the following tax year.”
- CP 250C (issued at year end): a reminder that Form 941 is required.
Deposit relief when you move to the 941. An employer leaving the 944 program is treated as having deposited its January taxes on time “if the employer deposits the amount of such deposit obligation(s) by March 15th of that year” (IRM 20.1.4.8.1). After that, the normal monthly or semiweekly deposit rules apply.
Notices about this form
Questions people ask about Form 944
Can we choose to file Form 944?
You can ask. If you expect $1,000 or less of employment taxes for 2027, call the IRS between January 1 and April 1, 2027 or mail a request postmarked by March 15, 2027. You file Forms 941 until the IRS confirms the change in writing.
Our payroll grew and we will owe more than $1,000. Do we switch back to Form 941 mid-year?
No. If you were notified to file Form 944 for 2026, you file Form 944 for 2026 even if liability exceeds $1,000. Once liability reaches $2,500 you must deposit under the deposit rules. You can request quarterly Forms 941 for a later year.
When is the 2026 Form 944 due?
February 1, 2027, because January 31, 2027 is a Sunday. If every deposit was made on time and in full, you may file by February 10, 2027.
We used to file Form 944 and now file Form 941. Is our deposit schedule different?
It can be. A Form 941 filer that filed Form 944 in either of the 2 prior years uses calendar 2024 as its 2026 lookback period, and a late January deposit escapes the FTD penalty if made in full by March 15.
Which schedule do semiweekly 944 filers attach?
Form 945-A, Annual Record of Federal Tax Liability. Schedule B (Form 941) is not attached to Form 944.
Other employer, withholding and ACA forms
Payroll and employment tax returns: W-4 · 941 · 941-X · 943 · 940 · W-2 · W-3 · W-2c · 8027
Withholding returns: 945 · 1042
Health coverage (ACA) returns: 1095-C · 1094-C · 1095-B · 1094-B
Paper transmittal: 1096
All of them on one table · Information returns (1099 series)
Sources: Form 944 (2026 draft, created May 4, 2026) and Instructions for Form 944 (2026 draft, dated Oct. 16, 2026); Form 944 (2025); Instructions for Form 941 (Rev. March 2026); Instructions for Form 941-X (Rev. April 2026); Pub 15 (2026), sections 11 to 13.