1118

Foreign Tax Credit—Corporations

Agency
IRS
Revision
Rev. December 2025
Fillable fields
1263
Pages
12
Official source
IRS form page
Checked
October 21, 2026
Fill 1118 online
Page 1 of form 1118

Form 1118: Foreign Tax Credit (Corporations)

Form 1118 is the foreign tax credit form for corporations. The instructions say it is used to compute a corporation's foreign tax credit for certain taxes paid or accrued to foreign countries or U.S. territories. The form says to attach it to the corporation's tax return and to use a separate Form 1118 for each applicable category of income.

The 12-page form holds Schedules A through H, with Schedule F reserved. Schedules I, J, K and L (Form 1118) are separate schedules with their own PDFs, listed on the About Form 1118 page.

The instructions also say Form 1118 is not used to determine foreign tax credits for the corporate alternative minimum tax; Form 4626 is used for that. This page covers the December 2025 revision. You can fill it out free in your browser on this page and download it without an account.

What's on Form 1118

Lines a, b and c: category of income

Line a takes the code for the separate category the form covers, such as 951A, FB, PAS, 901j, GEN or an RBT code. Lines b and c take a country code for the 901j and RBT categories.

Schedule A: income or loss before adjustments

Gross income from sources outside the United States by foreign country or U.S. territory, then allocable and apportioned deductions and any net operating loss deduction, all in U.S. dollars.

Schedule B: foreign tax credit

Part I lists foreign taxes paid, accrued and deemed paid. Part II figures the separate credit and its limitation. Part III adds the separate credits and gives the total foreign tax credit.

Schedules C, D and E: taxes deemed paid

Tax deemed paid with respect to section 951(a)(1) inclusions (Schedule C), section 951A income (Schedule D), and previously taxed earnings and profits (PTEP) (Schedule E).

Schedule G: reductions

Lines A through I reduce taxes paid, accrued or deemed paid, for example for foreign oil and gas taxes, international boycott provisions and taxes suspended under section 909. Part II has two check boxes for disqualified taxes.

Schedule H: apportioned deductions

Research and experimental deductions, deductions allocated and apportioned based on assets, and other deductions. The form says to complete it only once for all categories of income.

How to fill out Form 1118

  1. 1

    Pick the category

    The instructions say to compute a separate credit on a separate Form 1118 for each applicable category and enter its code on line a. With a 901j or RBT code, line b or c takes a country code from IRS.gov/CountryCodes.

  2. 2

    Schedule A

    The instructions say to report foreign source gross income for the category in columns 3(a) through 11, deductions in columns 13 and 14, and any net operating loss carryover in column 15. Amounts are in U.S. dollars.

  3. 3

    Schedule B, Part I

    Check whether the credit is claimed for taxes paid or accrued, then enter the foreign taxes by type. The form says to attach a schedule showing amounts in foreign currency and the conversion rate(s) used.

  4. 4

    Schedule B, Part II

    Line 6 totals the foreign taxes. Lines 7 through 13 figure the credit limitation from the limitation fraction and the U.S. income tax. Line 14 is the smaller of line 6 or line 13.

  5. 5

    Schedule B, Part III

    Enter the line 14 credit for each category on lines 1 through 6, apply any reduction for international boycott operations on line 9, and enter line 10 on the corporation's tax return.

  6. 6

    Schedules done once

    The instructions say Schedule B, Part III, Schedule H, Schedule J (Form 1118) and Schedule L (Form 1118), Part IV are completed only once, while the other schedules are completed for each category.

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Where it goes, elections and records

Attach to the return

The form says to attach it to the corporation's tax return. The instructions point to Where To File in the instructions for the return it is filed with.

Credit or deduction

The instructions say a corporation may choose either a credit or a deduction for eligible foreign income taxes paid or accrued, and the choice is made annually.

When to make the election

The instructions say the election to claim the credit may be made or changed at any time before the end of a special 10-year period described in section 6511(d)(3).

Excess foreign taxes

Excess taxes in a category are carried back 1 year, then carried forward 10 years, in the same category. The instructions say this does not apply to taxes assigned to section 951A category income.

Proof of credits

Receipts or a foreign tax return are not attached, but the instructions say proof is presented on IRS request. For tax accrued but not paid, the IRS may require a bond on Form 1117.

Treaty-based positions

A corporation relying on a treaty to claim a credit completes Form 8833 and attaches it to Form 1118. The instructions say failure to report may result in a $10,000 penalty.

Related forms

Who fills out Form 1118?

  • Corporations claiming the credit

    The instructions say any corporation that elects the benefits of the foreign tax credit under section 901 completes Form 1118 and attaches it to its income tax return.

  • Corporations with loss account changes

    Even without electing the credit, the instructions say a corporation attaches Form 1118, Schedule A and Schedule J (Form 1118) if it has additions to, reductions to or recapture of overall foreign loss, overall domestic loss or separate limitation loss accounts.

  • Foreign tax redeterminations

    The instructions say a taxpayer with a foreign tax redetermination under section 905(c) attaches Schedule L (Form 1118) for the year it occurs, whether or not it changed U.S. tax liability.

  • Individuals with a section 962 election

    Individuals who elect under section 962 to be taxed at corporate rates on inclusions from their controlled foreign corporations attach Form 1118 to claim a credit for their share of the foreign taxes. The instructions point to Pub. 514.

  • Not for the corporate AMT

    The instructions say foreign tax credits for the corporate alternative minimum tax are determined on the revised Form 4626, not on Form 1118.

The instructions name corporations first. Individuals use it only in the section 962 case described below.

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Questions about Form 1118

Is Form 1118 filed on its own?

No. The form says to attach it to the corporation's tax return.

How many Forms 1118 does a corporation file?

The instructions say a separate Form 1118 for each applicable separate category of income, such as section 951A, foreign branch, passive or general category income.

Can an individual use Form 1118?

The instructions say individuals who make the section 962 election attach Form 1118 to their income tax return to claim a credit based on their share of foreign income taxes paid or accrued by a controlled foreign corporation.

Is Form 1118 used for the corporate AMT?

No. The instructions say corporations use the revised Form 4626 to determine foreign tax credits for the corporate alternative minimum tax.

Do foreign tax receipts go with the form?

The instructions say documentation such as receipts or a foreign tax return is not attached, but proof is presented if the IRS asks for it.

Can Form 1118 be computer-generated?

The instructions say a computer-generated Form 1118 may be submitted if it conforms to the IRS version and the software is approved for substitute forms. They point to Pub. 1167.