Schedule B (Form 1116), Foreign Tax Carryover Reconciliation Schedule, is the Internal Revenue Service (IRS) schedule that you attach to Form 1116 to track foreign tax carryovers by tax year. You file one for each separate category of income on which you have a carryover from the prior year, the current year, or both. On this page you can fill out Schedule B (Form 1116) online on FillingPDF and download or print the completed PDF. The IRS publishes the form and its instructions at www.irs.gov/Form1116.
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What is Schedule B (Form 1116)?
Schedule B (Form 1116), Foreign Tax Carryover Reconciliation Schedule, is the IRS schedule, attached to Form 1116, that reconciles your prior-year foreign tax carryover with your current-year carryover and shows the running balance of each carryover by tax year.
The schedule has two pages and eight lines. Columns (i) through (vi) cover the 10th through 5th preceding tax years, column (vii) is a subtotal, columns (viii) through (xiii) cover the 4th preceding year through the current year, and column (xiv) holds the totals. Line 1 brings in the carryover from line 8 of the prior year Schedule B. Line 2 reports adjustments, line 3 gives the adjusted carryover, lines 4 and 5 show the carryover used and the carryover that expired unused, lines 6 and 7 show the carryover generated and the amount carried back, and line 8 gives the carryover to the following tax year.
The line 3, column (xiv) total is included on Form 1116, Part III, line 10. The form is issued under OMB No. 1545-0121, and the IRS cites section 904(c) and Regulations section 1.904-2 for further information. The schedule does not apply to section 951A category income.
Who needs to file Schedule B (Form 1116)?
You must file Schedule B (Form 1116) for each separate category of income if you are filing Form 1116 and have a foreign tax carryover in the prior tax year, the current tax year, or both.
- Use a separate Schedule B for each applicable category of income and check only one box on each schedule.
- The box you check must match the separate category code shown on the Form 1116 to which the schedule is attached.
- The categories on the form are foreign branch category income, passive category income, general category income, section 901(j) income, certain income re-sourced by treaty, and lump-sum distributions. Box a is reserved for future use.
Do not complete Schedule B for section 951A category income. The IRS instructions explain that the carryover provisions of section 904(c) do not apply to foreign taxes assigned to that category.
The form and instructions do not describe any representative or signer for this schedule; it travels with Form 1116.
When to file Schedule B (Form 1116)
Schedule B (Form 1116) is completed whenever you file a Form 1116 that has a foreign tax carryover in the prior year, the current year, or both. The form says to attach it to Form 1116 and prints no separate due date, so it is filed with that form and your income tax return.
If the actual carryback amount is not available when you file, the instructions allow you to enter an estimated or tentative amount on line 7. When the estimate differs from the actual carryback, you enter the difference on line 2a of the next year's Schedule B. To carry an amount back to the first preceding tax year, that year must be an excess limitation year. Any carryover remaining from the 10th preceding tax year expires unused.
Documents you need
- The prior year Schedule B (Form 1116) for the same category of income: you copy its line 8 amounts into line 1 of the current schedule, shifting one column.
- The Form 1116 for the same category, with Part III lines 9, 12, 13 and 23 completed, to determine whether you have an excess limitation or excess foreign taxes.
- The Line 1 Reconciliation Worksheet from the instructions, only if you are amending your 2021 foreign tax credit within the special 10-year limitation period under section 6511(d)(3) (or section 6511(c) if extended by agreement).
How to fill out Schedule B (Form 1116)
Enter tax year, name and number
Enter the calendar year or the tax year beginning and ending dates at the top, then your name and the identifying number shown on page 1 of your tax return.
Check one category box
Use a separate schedule for each category and check only one box, a through g, matching the separate category code on the attached Form 1116. Do not complete the schedule for section 951A category income.
Enter country codes if required
If you checked box e, enter the sanctioned country's code on line h. If you checked box f, enter the treaty country's code on line i. The instructions send you to IRS.gov/CountryCodes.
Bring in prior-year carryover on line 1
Enter the amounts from the appropriate columns of line 8 of the prior year Schedule B, shifted one column: the prior year column (ii) amount goes in column (i), column (iii) in column (ii), and so on.
Report adjustments on line 2
Use line 2a for the difference between an estimated and the actual carryback (column (xii)) and line 2b for section 905(c) redeterminations. Use lines 2c through 2g for audit and other adjustments, with a brief description.
Combine lines 1 and 2 on line 3
Enter the adjusted carryover in each column. The column (xiv) total is included on Form 1116, Part III, line 10.
Enter carryover used on line 4
Complete line 4 only if you have a current year excess limitation. Starting with column (i), enter the line 3 amount as a negative number, limited by the excess limitation less earlier columns.
Enter expired carryover on line 5
In column (i), the 10th preceding tax year, combine lines 3 and 4 and enter the result as a negative number. Complete the subtotal and totals columns as well.
Enter carryover generated on line 6
Complete line 6 only if you have current year excess foreign taxes. Enter the unused foreign tax in column (xiii), and the same amount in column (xiv).
Enter the carryback on line 7
Enter the amount of line 6 carried back to the first preceding tax year as a negative number. An estimated amount is allowed if the actual amount is not yet available.
Figure line 8 and the subtotals
Combine lines 3 through 7 on line 8 for each column. Carry the column (vii) subtotal from page 1 to column (viii) on page 2, and add columns (viii) through (xiii) in column (xiv).
Review and download the completed PDF
Check that one box is marked, the amounts are in U.S. dollars and the signs are correct. Download or print the completed PDF from FillingPDF and attach it to Form 1116.
How to submit Schedule B (Form 1116)
Schedule B (Form 1116) is not filed on its own: you attach it to Form 1116 and submit it with the income tax return that Form 1116 accompanies.
- With Form 1116: attach one completed Schedule B for each category of income, behind the Form 1116 for that category.
- Address and method: the schedule prints no mailing address, portal or appointment rule. Follow the filing instructions of the tax return with which you file Form 1116. The IRS points to www.irs.gov/Form1116 for instructions and the latest information.
All information must be in English and all amounts in U.S. dollars. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Checking more than one category box on a single schedule; the form allows only one box on each Schedule B.
- Combining several categories of income on one schedule instead of using a separate Schedule B for each applicable category.
- Checking a box that differs from the separate category code on the Form 1116 to which the schedule is attached.
- Completing Schedule B for section 951A category income, which the instructions say not to do.
- Entering lines 4, 5 and 7 as positive numbers; the form says to enter them as negative numbers.
- Entering more on line 4 than the current year excess limitation, less the amounts already entered in earlier columns; the column (xiv) total cannot exceed the excess limitation.
- Completing line 5 for columns other than column (i), the subtotal and the totals; it covers only the 10th preceding tax year.
- Leaving out the brief description of an adjustment next to its letter on lines 2c through 2g.
- Entering amounts in a foreign currency or text in another language; all information must be in English and all amounts in U.S. dollars.
- Using the Line 1 Reconciliation Worksheet for a year other than the tax year beginning in 2021 amended within the special 10-year period.
Frequently asked questions
What is Schedule B (Form 1116)?
Schedule B (Form 1116) is the IRS Foreign Tax Carryover Reconciliation Schedule. It reconciles your prior-year foreign tax carryover with your current-year carryover and gives running balances for each tax year. You attach it to Form 1116.
Who has to file Schedule B (Form 1116)?
You must file it for each separate category of income if you are filing Form 1116 and have a foreign tax carryover in the prior tax year, the current tax year, or both. Use a separate schedule for each category.
Do I complete Schedule B for section 951A category income?
No. The IRS instructions say not to complete Schedule B for section 951A category income, because the carryover provisions of section 904(c) do not apply to foreign taxes assigned to that category.
Where do the line 8 amounts go next year?
Next year you enter them on line 1, shifted one column: the line 8 amount in column (ii) of this year's schedule goes in column (i) of next year's, the column (iii) amount in column (ii), and so on.
What if my estimated carryback differs from the actual amount?
Enter the difference on line 2a, column (xii), of your next Schedule B. If the estimate on line 7 exceeded the actual carryback, the excess is entered as a positive number, as in the IRS example.
How long can a foreign tax carryover last?
Any carryover remaining from the 10th preceding tax year expires unused. You report that expiration on line 5, which is completed only for that year, the subtotal and the totals columns.
Can I fill out Schedule B (Form 1116) online?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the schedule; you attach it to Form 1116 and submit it with your return.
When do I need the Line 1 Reconciliation Worksheet?
Only if you are amending your 2021 foreign tax credit within the special 10-year limitation period under section 6511(d)(3), or section 6511(c) if extended by agreement. It figures the line 1 amounts for the tax year beginning in 2021.
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