Which form is used to claim credit for overpayments according to the Circular E?

The correct answer encompasses forms 944 and 941, both of which can be utilized to claim credit for overpayments based on the guidelines outlined in Circular E.

Form 941, Employer’s Quarterly Federal Tax Return, is designed for employers to report income taxes, Social Security tax, and Medicare tax withheld from employee paychecks. This form is typically filed quarterly, and if an employer overpays any of these taxes, they can use it to claim a credit for the overpayment.

Form 944, Employer’s Annual Federal Tax Return, serves a similar purpose but is intended for small employers who owe less than $1,000 in employment taxes annually. This form allows these employers to report their tax liabilities and, if they have made overpayments, to claim credits accordingly on an annual basis rather than quarterly.

In summary, both forms 941 and 944 are acceptable for claiming credits for overpayments under the guidelines provided in Circular E, which is why the option that includes either of these forms is the correct choice.