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  • Form 1118 (rev. December 2013)

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1118 Form (Rev. December 2013) Department of the Treasury Internal Revenue Service Foreign Tax Credit?Corporations ? For calendar year 20 Information about Form 1118 and its separate instructions.

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The simplest way to see if you paid foreign taxes is to look at the 1099 forms or K-1 schedules you receive. For example, the 2022 Form 1099-DIV lists the foreign taxes paid in box 7.

File Form 1116, Foreign Tax Credit, to claim the foreign tax credit if you are an individual, estate or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession. Corporations file Form 1118, Foreign Tax Credit—Corporations, to claim a foreign tax credit.

See section 6114 and Regulations section 301.6114-1 for details. Failure to make such a report may result in a $10,000 penalty. Form 1118 must be carefully filled in with all the information called for and with the calculations of credits indicated.

Who Must File Form 1118? Form 1118 is used by foreign corporations subject to US taxation on their income if the same income is subject to an income tax in another country.

All Form 1116 filers must choose how they regard their income: on an accrual basis or a cash basis. If you record income when you earn it rather than when you get paid, you use the accrual method. If you record income when you receive it, you use the cash method. Most individuals use the cash method.

In simple terms, accrued taxes refers to taxes assessed against a company that have not yet been paid, whether those taxes are on the company's earned revenue or on the value of any property the company owns.

File Form 1116, Foreign Tax Credit, to claim the foreign tax credit if you are an individual, estate or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession. Corporations file Form 1118, Foreign Tax Credit—Corporations, to claim a foreign tax credit.

Foreign taxes generally accrue when all the events have taken place that fix the amount of the tax and your liability to pay it. If you are contesting your foreign tax liability, you cannot accrue it and take a credit until the amount of foreign tax due is finally determined.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232