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Department of the Treasury
Internal Revenue Service
Instructions for Schedule B
(Form 1116)
(Rev. December 2022)
Foreign Tax Carryover Reconciliation Schedule
Section references are to the Internal Revenue Code Who Must File
unless otherwise noted.
With respect to each separate category of income, if
you’re filing Form 1116 that has a foreign tax carryover in
Future Developments the prior tax year, the current tax year, or both, you must
file Schedule B for that separate category of income.
For the latest information about developments related to
Schedule B (Form 1116) and its instructions, such as Definitions
legislation enacted after they were published, go to
IRS.gov/Form1116. Excess limitation. If your foreign tax credit limitation
(Form 1116, Part III, line 23) exceeds your current year
What’s New foreign taxes available for credit (the sum of Form 1116,
Line 1 of Schedule B has been revised to instruct filers to Part III, lines 9, 12, and 13), you have an excess limitation.
enter the amounts from the appropriate columns of line 8 Excess foreign taxes. If your current year foreign taxes
of the prior year Schedule B. available for credit (the sum of Form 1116, Part III, lines 9,
12, and 13) exceed your foreign tax credit limitation (Form
The “Caution” at the top of the Line 1 Reconciliation 1116, Part III, line 23), you have excess foreign taxes.
Worksheet at the end of these instructions has been
updated to clarify that the worksheet should now only be
used in cases where you’re amending your 2021 foreign Specific Instructions
tax credit within the special 10-year limitation period
described in section 6511(d)(3) (or section 6511(c) if the Important: All information reported on Schedule B must
period is extended by agreement). be in English. All amounts must be stated in U.S. dollars.
Checkboxes at top of page 1. Use a separate
Schedule B for each applicable category of income and
General Instructions check the corresponding box. Check only one box for
Purpose of Schedule each completed Schedule B.
Schedule B (Form 1116) is used to reconcile your prior See Categories of Income in the Instructions for Form
year foreign tax carryover with your current year foreign 1116 for additional information regarding separate
tax carryover. Taxpayers are therefore reporting running categories. For country codes on lines (h) and (i), see
balances of their foreign tax carryovers showing all activity IRS.gov/CountryCodes for the code to use.
since the filing of their prior year income tax return.
Note. Don’t complete Schedule B for section 951A
Lines 1 through 3. On these lines, you figure your category income because the carryover provisions of
adjusted foreign tax carryover from the prior tax year section 904(c) don’t apply to foreign taxes assigned to
which is available for credit in the current tax year. The section 951A category income.
total amount on line 3, column (xiv), is included on Form
Line 1. Foreign tax carryover from the prior tax year.
1116, Part III, line 10.
Enter on line 1 the amounts from the appropriate columns
Line 4. If you have a current year excess limitation of line 8 of the prior year Schedule B. For example, enter
(defined later), some or all of the line 3 adjusted foreign on line 1, column (i) of the current year Schedule B the
tax carryover amount will be utilized in the current tax amount from line 8, column (ii) of the prior year
year. This activity is shown on line 4 of Schedule B. Schedule B. Enter on line 1, column (ii) of the current year
Lines 5 through 8. If you have current year excess Schedule B the amount from line 8, column (iii) of the prior
foreign taxes (defined later), none of the line 3 adjusted year Schedule B. Enter on line 1, column (iii) of the current
foreign tax carryover amount will be utilized in the current year Schedule B the amount from line 8, column (iv) of the
tax year. If you have any remaining carryover from the prior year Schedule B.
10th preceding tax year, this carryover amount will expire Line 2. Adjustments to line 1. Report on lines 2a, 2b,
unused. This activity is shown on line 5 of Schedule B. 2c, 2d, etc., any adjustments resulting from events that
Furthermore, you will generate a foreign tax carryover in occurred between the filing of your prior year tax return
the current tax year which can be carried back to the prior and the filing of your current year tax return.
tax year and/or carried forward to future tax years (see the Line 2a. Carryback adjustment. Enter on line 2a,
line 10 instructions in the Instructions for Form 1116 for column (xii), the difference between any estimated
details). This activity is shown on lines 6 through 8 of carryback amount you may have used on your prior year
Schedule B. carryover schedule (that is, any estimated carryback
Dec 29, 2022 Cat. No. 37626c
