1120-S

Shareholder’s Share of Income, Deductions, Credits, etc.—International

Agency
IRS
Revision
2025
Fillable fields
2116
Pages
15
Official source
IRS form page
Checked
October 21, 2026
Fill 1120-S online
Page 1 of form 1120-S

Schedule K-3 (Form 1120-S): Shareholder's Share of Income, Credits, etc., International

Schedule K-3 (Form 1120-S) is the Shareholder's Share of Income, Deductions, Credits, etc., International. The shareholder's instructions say it is an extension of Schedule K-1 (Form 1120-S) and is generally used to report to shareholders their shares of the items reported on Schedule K-2.

The S corporation completes it for each shareholder. The About Form 1120-S page says the S corporation files a copy with the IRS to report the shareholder's share of items with international tax relevance. The shareholder reads it with the separate Shareholder's Instructions for Schedule K-3 (Form 1120-S).

This page covers the 2025 schedule, for calendar year 2025 or a tax year beginning in 2025. You can fill it out free in your browser on this page and download it without an account.

What's on Schedule K-3 (Form 1120-S)

Items A to F

The corporation's EIN, name and address, the shareholder's identifying number, name and address, Yes or No for each of Parts I to VII, and a box for an amended K-3.

Part I: other international information

13 boxes the corporation checks for attachments, such as gain on personal property sale, foreign oil and gas taxes, splitter arrangements, high-taxed income and Form 8865 information.

Part II: foreign tax credit limitation

The shareholder's share of gross income and deductions by U.S. source, foreign branch, passive, general and other category income, and income sourced by shareholder.

Part III: information for Form 1116

R&E expenses apportionment factors, interest expense apportionment factors, and the shareholder's share of foreign taxes paid or accrued.

Parts IV and V

Part IV lists distributions from foreign corporations to the S corporation. Part V covers the shareholder's section 951(a)(1) and 951A inclusions, which the instructions tie to Form 8992 and Form 1040.

Parts VI and VII

Part VI gives PFIC and qualified electing fund information used for Form 8621. Part VII reports the shareholder's share of the S corporation's interest in foreign corporation income under section 960.

How to fill out Schedule K-3 (Form 1120-S)

  1. 1

    Tax year and identifying information

    Enter the tax year if it is not calendar year 2025. Enter the corporation's EIN, name and address in items A and B, and the shareholder's identifying number, name and address in items C and D.

  2. 2

    Item E

    Check Yes or No for each of Parts I to VII. The instructions say the S corporation checks Yes for the applicable parts and No for the parts that do not apply.

  3. 3

    Part I

    Check the boxes for the attachments included. The instructions say box 13 is for items with international tax effects not reported elsewhere on Schedules K-2 and K-3, reported on an attachment.

  4. 4

    Parts II to VII

    Enter the shareholder's share on each part answered Yes in item E. The instructions say all amounts are in U.S. dollars except where otherwise specified.

  5. 5

    Item F

    Item F has one box, Amended K-3, which the form says to check if applicable. The form also says to see the separate instructions.

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Where it goes and what the shareholder does with it

Copy to the IRS

The About Form 1120-S page says the S corporation files a copy of this schedule with the IRS. The form points to www.irs.gov/Form1120S.

Shareholder's copy

The instructions say the Shareholder's Instructions for Schedule K-1 (Form 1120-S) generally apply to Schedule K-3, including the instructions on inconsistent treatment of items and errors.

Different facts

If the corporation's assumptions do not match the shareholder's actual facts, the instructions say the shareholder treats the items by those facts and, if appropriate, files Form 8082.

Domestic filing exception

The instructions say a shareholder may not receive Schedule K-3 if the S corporation was eligible for an exception, and give reasons to request it when Form 1116 is filed.

Related forms

Who fills out Schedule K-3 (Form 1120-S)?

  • S corporations

    The S corporation fills in items A to F and the parts that apply. The About Form 1120-S page says it files a copy of the schedule with the IRS.

  • Shareholders who receive it

    The instructions say shareholders include this information on their tax or information returns, if applicable, and only need to use the schedules that apply to them.

  • Shareholders claiming a foreign tax credit

    Parts II and III give the information shareholders use to figure a foreign tax credit on Form 1116. The instructions say a shareholder making a section 962 election also completes Form 1118 for deemed paid credits.

  • Corporations with little foreign activity

    The instructions say an S corporation with no foreign source income, no assets generating it and no foreign taxes may still report on Schedule K-3, because shareholders may need it for Form 1116.

The S corporation prepares it. The shareholder receives it and uses the parts that apply.

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Questions about Form 1120-S

Who prepares Schedule K-3 (Form 1120-S)?

The S corporation. The About Form 1120-S page says it files a copy with the IRS to report the shareholder's share of items with international tax relevance.

How is it different from Schedule K-1?

The instructions say Schedule K-3 is an extension of Schedule K-1 (Form 1120-S), generally used to report to shareholders their shares of the items reported on Schedule K-2.

Why did a corporation with no foreign activity send one?

The instructions say such a corporation may report on Schedule K-3 because a shareholder who claims the foreign tax credit generally needs information from Parts II and III to complete Form 1116.

Why might a shareholder not get one?

The instructions say the S corporation may have been eligible for an exception, such as the domestic filing exception, and give an example where the schedule is not issued unless the shareholder requests it.

What if the items do not match the shareholder's facts?

The instructions say to treat the items according to the shareholder's actual facts and, if appropriate, file Form 8082 to identify and explain the inconsistency.

Which forms use the information?

The instructions name Form 1116 and Form 1118 for the foreign tax credit, Form 8992 and Form 1040 for inclusions under sections 951(a) and 951A, and Form 8621 for PFICs.