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Form 1118, Foreign Tax Credit - Corporations

Form 1118 option for Foreign Tax Credit or Intl Foreign Tax Credit

Amounts from both
Foreign Tax Credit
 and
INTL Foreign Tax Credit
 are included in the totals in
Tax Forms
 and included in the detail in
Print
 and the
E-file
.
  1. In the top consolidation in
    Organizer
    General Information
    Return and Print Options
    Form 1118 option
     tab, mark the
    Check to display Domestic (non-international) Form 1118 in the Organizer | Foreign Information
     checkbox. This populates the
    Organizer
    Foreign Information
    Foreign Tax Credit
     in the divisions, parent, and subsidiaries with the data to consolidate.
  2. If not selected, the
    International Compute
     for
    Transfer to US1118
     populates in
    Organizer
    Foreign Information
     under
    Intl Foreign Tax Credit
     in the divisional consolidations, parent, subsidiaries, and top consolidation with data that doesn’t consolidate.
  3. If the selection is changed, select
    Transfer to P and S (Mandatory)
     in the top consolidation, subconsolidations, then divisional consolidations.
  4. The selection must be toggled to switch between displaying
    Foreign Tax Credit
     and
    Intl Foreign Tax Credit
     in
    Organizer
     and
    Tax Forms
    .

Remove data from incorrect locations

  1. If the domestic
    Foreign Tax Credit
     will be populated, in
    Organizer
    General Information
    Return and Print Options
    Federal Deactivation
     tab under
    International
    , select
    Delete International Form 1118
     and
    Delete International Transfer
     in the divisional consolidations, parent, subsidiaries, subconsolidations, and top consolidation.
  2. If the
    Intl Foreign Tax Credit
     will be populated, in
    Organizer
    Foreign Information
    Foreign Tax Credit
    Deactivation
     under
    Deactivation Form 1118
    , mark the
    To deactivate Form 1118
     checkbox in the top consolidation, subconsolidations, divisional consolidations, parent, subsidiaries, and divisions.
  3. Compute
     in the
    Organizer
    .
  4. Deselect
    To deactivate Form 1118
    .
  5. Then, in the top consolidation under
    Foreign Tax Credit
    International Compute
    TIBS, FTC
     tab, mark the
    Transfer to US1118
     checkbox, then
    Compute
    .
  6. In
    Tax Forms
    Federal
    1118 – Foreign Tax Credit
    , in the specific category of income in the specific schedule, select
    See Detail
     to display the workpapers.
  7. Right-click and select
    Clear Override
     on each amount with an override indicator of a red or blue circle.
  8. Alternatively, in
    Organizer
    Foreign Information
    Intl Foreign Tax Credit
    Adding Income Basket and Country
    Clear Overrides
     tab, or in
    Foreign Information
    Foreign Tax Credit
    Deactivation
    Delete Data Entered Directly on the Tax Form
    , select
    Delete Data Entered Directly on the Tax Form
    , then select the following in the members and consolidations:
    1. Clear Passive Schedule A Overrides
    2. Clear Passive Schedule B Overrides
    3. Clear General Schedule A Overrides
    4. Clear General Schedule B Overrides
  9. Schedule K
     and
    Schedule L
     are populated in the top consolidation and should be blank in the members.
  10. Organizer Compute Full Recompute
     any changed members.
  11. Organizer Consolidate
     any changed consolidations or consolidations with changed members, beginning at the divisional consolidations, then subconsolidations, then the top consolidation.

This article applies to:

  • PRODUCT: ONESOURCE Income Tax
  • Return type: international

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