How To Complete Form 1118

Important: Complete a separate Schedule A; Schedule B, Parts I and II; Schedules C through G; Schedule I (Form 1118); Schedule K (Form 1118); and Schedule L (Form 1118), Parts I, II, III, and V for each applicable separate category of income. See Categories of Income, later. Complete Schedule B, Part III; Schedule H; Schedule J (Form 1118); and Schedule L (Form 1118), Part IV, only once.

• Use Schedule A to compute the corporation’s income or loss before adjustments for each applicable category of income.

• Use Schedule B to determine the total foreign tax credit after certain reductions.

• Use Schedule C to compute taxes deemed paid by the domestic corporation filing the return with respect to inclusions under section 951(a)(1).

• Use Schedule D to compute taxes deemed paid by the domestic corporation filing the return with respect to inclusions under section 951A.

• Use Schedule E to compute taxes deemed paid by the domestic corporation filing the return with respect to distributions of previously taxed income (also referred to as previously taxed earnings and profits (PTEP)).

indicate the separate category with respect to which you are completing a given Form 1118.

If you enter code “901j” or one of the “RBT” codes in item a, also complete item b or item c using the country codes provided at IRS.gov/CountryCodes .

Section 951A Category Income Section 951A category income is any amount of global intangible low-taxed income (GILTI) includible in gross income under section 951A (other than passive category income). Section 951A defines GILTI.

• Use Schedule G to report required reductions of tax paid, accrued, or deemed paid.

• Use Schedule H to apportion deductions that cannot be allocated to an item or class of income identified on Schedule A.

• When completing a Form 1118 for section 951A category income, enter the code “951A” on line a at the top of page 1.

• Section 951A category income does not include passive category income.

• Use Schedule I (a separate schedule) to compute reductions of taxes paid, accrued, or deemed paid on foreign oil and gas income.

• Use Schedule J (a separate schedule) to compute adjustments to separate limitation income or losses in determining the numerators of limitation fractions, year-end recharacterization balances, and overall foreign and domestic loss account balances.

• Use Schedule K (a separate schedule) to reconcile the corporation’s prior-year foreign tax carryover with its current-year foreign tax carryover.

• Use Schedule L (a separate schedule) to report foreign tax redeterminations that occurred in the current tax year and that relate to prior tax years.