Form detail
IRS Form 1118
Foreign Tax Credit - Corporations
Country
United States
Revision year
2024
Methods
paper, efile
Updated
2026-05-20
Foreign Tax Credit - Corporations
Computes the foreign tax credit for corporations.
Who must file: U.S. corporations claiming the foreign tax credit under Sections 901, 902, 904, and related provisions.
Practical overview
Form 1118 mirrors Form 1116 for corporations but adds complexity for indirect credits, Section 78 gross-up, GILTI/FDII calculations, and look-through rules for CFCs. Post-TCJA, corporate FTC categories include separate baskets for GILTI and foreign-branch income. The Section 78 gross-up of indirect taxes is essential and frequently overlooked.
Practical steps
- Categorize foreign income and foreign tax by Section 904(d) basket including post-TCJA GILTI and branch baskets.
- Apply Section 78 gross-up of indirect taxes deemed paid.
- Compute the FTC limitation by category.
- Track carryback and carryforward by category.
Due-date notes
Attached to Form 1120 by the corporate return due date.
Timing: return-due-date
Extension reference: Form 7004
Penalty snapshot
No standalone penalty; failure to file may result in inability to claim the credit.
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
Primary sources
- About Form 1118Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.