Form 940 Federal Unemployment Tax Return (FUTA) (2025): Edit Online Free & Download PDF
Federal Unemployment Tax Return (FUTA): Employer's Annual Federal Unemployment (FUTA) Tax Return
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Form 940 in short
Form 940 is the yearly return employers use to report federal unemployment (FUTA) tax. FUTA tax is paid only by employers and is not taken out of employees' wages. The form works out the tax on the first $7,000 paid to each employee, the credit for state unemployment tax, and any balance due. Page 3 is the Form 940-V payment voucher. The current version is for tax year 2025.
| Issued by | Internal Revenue Service (IRS) |
|---|---|
| Current version | 2025 (checked 2026-10-25) |
| Who fills it in | Most employers who paid wages of $1,500 or more in any calendar quarter in 2024 or 2025, or had at least one employee for some part of a day in 20 or more different weeks in either year. Household and farm employers have different tests. Most household employers use Schedule H (Form 1040) instead. Section 501(c)(3) organizations, state and local governments, and qualifying tribal governments generally do not file. |
| Who receives it | The Internal Revenue Service. |
| Where to send it | The IRS encourages e-filing. On paper, the address depends on your state and whether you include a payment. Without a payment, mail to Kansas City, MO 64999-0046 or Ogden, UT 84201-0046. With a payment, mail to Internal Revenue Service, P.O. Box 932000, Louisville, KY 40293-2000. Check the Form 940 instructions for your state. |
| Deadline | For 2025, Form 940 is due February 2, 2026. If you deposited all FUTA tax when due, you may file by February 10, 2026. FUTA deposits are due quarterly once the undeposited tax is more than $500. |
| Official links | Official page · Official PDF · Official instructions |
What changed
The 2025 form adds an Aggregate Return Filers Only section for section 3504 agents, CPEOs and other third parties. Refunds are now issued by direct deposit (new lines 15c to 15e), and the IRS asks that balance due payments be made electronically. For 2025 there are credit reduction states, which are figured on Schedule A (Form 940).
How to fill out Form 940, line by line
| Header | EIN, name, trade name and address Use your legal business name, not the trade name, and the same EIN you use on other employment tax returns. |
| Type of Return | Amended, successor, no payments, final Check all that apply. Box c is for no payments to employees in 2025; then sign Part 7 and file. Box d is for a business that closed or stopped paying wages. |
| Aggregate Return Filers Only | Type of filer New for 2025. Only section 3504 agents, certified professional employer organizations and other third parties filing aggregate returns check one box. |
| Part 1, lines 1a to 2 | State unemployment and credit reduction Enter the state abbreviation if you paid state unemployment tax in one state. Check 1b if more than one state, and line 2 if you paid wages in a credit reduction state. Both need Schedule A (Form 940). |
| Part 2, lines 3 to 8 | FUTA tax before adjustments Total payments to employees, minus exempt payments and amounts over $7,000 per employee, gives taxable FUTA wages. Line 8 is line 7 times 0.006. |
| Part 3, lines 9 to 11 | Adjustments Line 9 applies if all taxable FUTA wages were excluded from state unemployment tax. Line 10 uses the worksheet if some were excluded or state tax was paid late. Line 11 is the credit reduction from Schedule A. |
| Part 4, lines 12 to 15 | Balance due or overpayment Compare total FUTA tax with deposits. If the balance is more than $500 it must be deposited. For an overpayment, choose to apply it to the next return or get a refund, and give bank details on lines 15c to 15e for direct deposit. |
| Part 5, lines 16a to 17 | Quarterly liability Complete only if line 12 is more than $500. Enter the tax liability for each quarter, not the amount deposited. Line 17 must equal line 12. |
| Part 6 | Third-party designee Optional. Name a person the IRS may talk to about this return and choose a 5-digit PIN for them. |
| Part 7 | Signature Both pages must be completed and the form signed, with your printed name, title and daytime phone. A paid preparer completes their section. |
Common mistakes to avoid
- Withholding FUTA tax from employees' pay. Only employers pay FUTA tax.
- Entering the amount deposited in Part 5 instead of the tax liability for each quarter.
- Paying a balance over $500 with the return instead of depositing it by electronic funds transfer, which can lead to a penalty.
- Forgetting Schedule A (Form 940) when you paid wages in more than one state or in a credit reduction state.
- Including moving expense or bicycle commuting reimbursements as exempt payments on line 4. The instructions say they are not exempt.
- Mailing a return with a payment to the without-payment address, or the other way around.
- Signing only page 1. Both pages must be completed and the form signed in Part 7.
- Using the trade name in place of the legal business name.
Questions about Form 940
Do I deduct FUTA tax from my employees' wages?
No. The IRS says only employers pay FUTA tax. Do not collect or deduct it from employees' wages.
When is Form 940 due?
For 2025, February 2, 2026. If all FUTA tax was deposited on time, you can file by February 10, 2026.
Do I need to make deposits during the year?
Yes, once your undeposited FUTA tax for the year is more than $500. Deposits must be made by electronic funds transfer, such as EFTPS, IRS Direct Pay or your IRS business tax account.
I only have a nanny. Do I file Form 940?
Generally no. Household employers usually report FUTA tax on Schedule H (Form 1040). It applies if you paid cash wages of $1,000 or more in any calendar quarter in 2024 or 2025.
What is a credit reduction state?
A state that has not repaid money it borrowed from the federal government to pay unemployment benefits. Employers paying wages there owe additional FUTA tax, figured on Schedule A (Form 940). There are credit reduction states for 2025.
Can I file Form 940 electronically?
Yes. The IRS encourages e-filing through its employment tax e-file program. Amended Forms 940 can also be e-filed.
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Checked against the official sources on 2026-10-25. PDF Editor Hub is not affiliated with the Internal Revenue Service or any government agency. This page is general information, not legal or tax advice.