Schedule INS: Tax for Foreign Insurers (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule INS, Tax for Foreign Insurers, calculates replacement tax and income tax reductions using the tax imposed by your state or country of domicile and an Illinois income tax reduction limit. It is attached to Form IL-1120.
Who files this form
Schedule INS is the Illinois tax schedule for foreign insurers. Attach it to Form IL-1120.
If Schedule INS, Line 15 is greater than Line 12, you are not entitled to a tax reduction and must not use this schedule.
What you'll need
- Your Form IL-1120, with Steps 1 through 7 completed. You will use amounts from Lines 23, 29, 39, 44, and 49.
- Your name as shown on Form IL-1120, federal employer identification number (FEIN), and state or country of domicile.
- Completed copies of all forms supporting the pro forma tax calculation on Line 4, unless you check the box stating that your state or country of domicile does not impose an income tax on insurance companies.
- The amounts deducted in computing this year’s federal taxable income for the specified Illinois privilege tax, fire insurance company tax, and fire department tax.
How to file
Attach Schedule INS to your Form IL-1120. If you did not check the box on Line 4, also attach completed copies of all forms needed to support your pro forma tax calculation.
Enter the replacement tax reduction from Schedule INS, Line 17 on Form IL-1120, Step 8, Line 51. Enter the income tax reduction from Schedule INS, Line 20 on Form IL-1120, Step 8, Line 54.
Common mistakes
- Completing Schedule INS before finishing Steps 1 through 7 of Form IL-1120.
- Including retaliatory tax in the privilege tax amount on Line 7a. The form says not to include it.
- Entering a negative amount on Line 9. Enter zero if Line 6 minus Line 8 is negative.
- Failing to attach supporting forms when the box on Line 4 is not checked.
- Using the schedule when Line 15 is greater than Line 12. In that case, no tax reduction is allowed.
- Leaving out required information. The form warns that failure to provide information could result in a penalty.
Questions people ask
What if my state or country of domicile does not tax insurance company income?
Check the box on Line 4 and enter zero on that line.
What is the pro forma tax on Line 4?
It is the total tax measured by net income, less credits, imposed by your state or country of domicile on an insurance company with base income before apportionment equal to Line 2 and net income after apportionment equal to Line 3.
How do I figure the income tax reduction limit?
Multiply the net premiums entered on Line 5 by 1.75 percent (.0175). Then subtract the total of the specified tax deductions on Lines 7a through 7c. If the result is negative, enter zero on Line 9. Also enter that amount on Line 14.
Where do I report the tax reductions?
Report the replacement tax reduction from Line 17 on Form IL-1120, Step 8, Line 51. Report the income tax reduction from Line 20 on Form IL-1120, Step 8, Line 54.