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Department of the Treasury
Internal Revenue Service
Instructions for Schedule B
(Form 1116)
(December 2021)
Foreign Tax Carryover Reconciliation Schedule
Section references are to the Internal Revenue must file Schedule B for that separate your prior year carryover schedule (that is,
Code unless otherwise noted. category of income. the equivalent of any estimated carryback
amount that you would have entered on
Future Developments Definitions line 7, column (xiii), of Schedule B had that
schedule existed last year) and the actual
For the latest information about Excess limitation. If your foreign tax carryback amount.
developments related to Schedule B credit limitation (Form 1116, Part III,
(Form 1116) and its instructions, such as line 23) exceeds your current year foreign Example. For 2021, Sam has excess
legislation enacted after they were taxes available for credit (the sum of Form foreign taxes of $100 entered on
published, go to IRS.gov/Form1116. 1116, Part III, lines 9, 12, and 13), you Schedule B, line 6, column (xiii). Sam
have an excess limitation. enters $20 on line 7 as the estimated
amount of line 6 to be carried back to
General Instructions Excess foreign taxes. If your current 2020. He enters $80 on line 8 as the
year foreign taxes available for credit (the carryover amount for following years. The
Purpose of Schedule sum of Form 1116, Part III, lines 9, 12, and actual carryback amount to 2020 is later
Schedule B (Form 1116) is used to 13) exceed your foreign tax credit determined to be $15. In 2022, Sam
reconcile your prior year foreign tax limitation (Form 1116, Part III, line 23), you enters $80 on line 1, column (xii), as the
carryover with your current year foreign have excess foreign taxes. carryover from 2021, corresponding to the
tax carryover. Taxpayers are therefore amount entered on line 8, column (xiii), of
reporting running balances of their foreign Specific Instructions Schedule B filed for the 2021 tax year.
tax carryovers showing all activity since Because the estimated carryback amount
the filing of their prior year income tax Important: All information reported on of $20 from 2021 to 2020 (entered on
return. Schedule B must be in English. All line 7 of Schedule B filed for 2021)
amounts must be stated in U.S. dollars. exceeds the actual carryback of $15, Sam
Lines 1 through 3. On these lines, you will enter the $5 excess ($20 − $15) on
figure your adjusted foreign tax carryover Checkboxes at top of page 1. Use a
from the prior tax year which is available separate Schedule B for each applicable line 2a of his 2022 Schedule B as a
for credit in the current tax year. The total category of income and check the positive number. Assuming no other
amount on line 3, column (xiv), is included corresponding box. Check only one box adjustments are needed, the total
on Form 1116, Part III, line 10. for each completed Schedule B. carryover amount from 2021 entered on
line 3, column (xii), of Sam’s 2022
Line 4. If you have a current year excess See Categories of Income in the Schedule B will be $85 ($80 + $5).
limitation (defined later), some or all of the Instructions for Form 1116 for additional
line 3 adjusted foreign tax carryover information regarding separate categories. Line 2b. Adjustments for section
amount will be utilized in the current tax For country codes on lines (h) and (i), see 905(c) redeterminations. Enter on
year. This activity is shown on line 4 of IRS.gov/CountryCodes for the code to line 2b any adjustments needed for
Schedule B. use. section 905(c) redeterminations. See
Foreign Tax Redeterminations in the
Lines 5 through 8. If you have current Note. Don’t complete Schedule B for Instructions for Form 1116 for additional
year excess foreign taxes (defined later), section 951A category income because information.
none of the line 3 adjusted foreign tax the carryover provisions of section 904(c)
carryover amount will be utilized in the don’t apply to foreign taxes assigned to Lines 2c, 2d, 2e, etc. Include on
current tax year. If you have any remaining section 951A category income. these additional lines the following types
carryover from the 10th preceding tax of adjustments needed to reflect:
year, this carryover amount will expire Line 1. Foreign tax carryover from the • Domestic audit adjustments, and
unused. This activity is shown on line 5 of prior tax year. Enter on line 1 the • Any other adjustments needed to
Schedule B. Furthermore, you will amounts from line 6 of the Line 1 properly reflect the total carryover amount
generate a foreign tax carryover in the Reconciliation Worksheet at the end of the from the prior tax year that is available for
current tax year which can be carried back instructions. See the instructions under credit in the current tax year.
to the prior tax year and/or carried forward Line 1 Reconciliation Worksheet, later,
to future tax years (see the line 10 before completing the worksheet. Note. Be sure to enter a brief description
instructions in the Instructions for Form Line 2. Adjustments to line 1. Report of each applicable adjustment item
1116 for details). This activity is shown on on lines 2a, 2b, 2c, 2d, etc., any immediately after the lower case letter in
lines 6 through 8 of Schedule B. adjustments resulting from events that the first column of the schedule.
occurred between the filing of your prior Line 3. Adjusted foreign tax carryover
Who Must File year tax return and the filing of your from prior tax year. Combine lines 1
With respect to each separate category of current year tax return. and 2. The total amount on line 3, column
(xiv), is the adjusted carryover amount
income, if you are filing Form 1116 that Line 2a. Carryback adjustment. from the prior tax year. It is included on
has a foreign tax carryover in the prior tax Enter on line 2a, column (xii), the Form 1116, Part III, line 10 (and, if filing an
year, the current tax year, or both, you difference between any estimated amended return, combined with
carryback amount you may have used on
Mar 15, 2022 Cat. No. 37626c
