INSTRUCTIONS: FOREIGN TAX CREDIT — CORPORATIONS (Form 1118)
To claim a foreign tax credit on their federal income tax return, corporations should file form 1118. This document can be obtained from the website of the Internal Revenue Service.
Foreign Tax Credit — Corporations 1118 Step 1: Enter the beginning and ending dates of your fiscal year if not filing on a calendar year basis.
Foreign Tax Credit — Corporations 1118 Step 2: Enter the name of the corporation.
Foreign Tax Credit — Corporations 1118 Step 3: Enter your employer identification number.
Foreign Tax Credit — Corporations 1118 Step 4: Check only one of the four boxes listing the four applicable types of income. A separate form 1118 must be filed for each separate type of income.
Foreign Tax Credit — Corporations 1118 Step 5: Document your income or loss before adjustments as instructed in the tables provided in Schedule A.
Foreign Tax Credit — Corporations 1118 Step 6: Schedule B on the second page concerns the foreign tax credit. Document foreign taxes paid, accrued and deemed paid in Part I.
Foreign Tax Credit — Corporations 1118 Step 7: Document any separate foreign tax credit in Part II.
Foreign Tax Credit — Corporations 1118 Step 8: Part III requires a summary of separate credits.
Foreign Tax Credit — Corporations 1118 Step 9: Schedule C on the third page concerns taxes deemed paid by the domestic corporation filing the return.
Foreign Tax Credit — Corporations 1118 Step 10: Schedule D on the fourth page concerns taxes deemed paid by first- and second-tier foreign corporations under 902(b).
Foreign Tax Credit — Corporations 1118 Step 11: Schedule E on the fifth page concerns taxes deemed paid by certain third-, fourth- and fifth-tier foreign corporations under 902(b).
Foreign Tax Credit — Corporations 1118 Step 12: Schedule F on the sixth page concerns gross income and definitely allocable deductions for foreign branches.
Foreign Tax Credit — Corporations 1118 Step 13: Schedule G on the sixth page concerns reductions of taxes paid, accrued or deemed paid.
Foreign Tax Credit — Corporations 1118 Step 14: Schedule H on the seventh page concerns apportionment of deductions which are definitely not allocable. Part I of this schedule concerns research and development deductions, while Part II concerns interest deductions, all other deductions and total deductions.
