Schedule INS: Tax for Foreign Insurers (2025)
Illinois · Illinois DOR · Used for tax years 2025
Illinois Schedule INS figures the tax a foreign insurer owes on Illinois insurance business, including premiums and the retaliatory tax comparison.
Who files this form
Schedule INS is the Tax for Foreign Insurers schedule attached to Form IL-1120.
Do not use this schedule if Line 15 is greater than your tentative tax on Line 12. In that case, the form says you are not entitled to a tax reduction.
What you'll need
Have these forms and amounts ready:
- Your Form IL-1120, with Steps 1 through 7 completed.
- Your name as shown on Form IL-1120, federal employer identification number (FEIN), and state or country of domicile.
- The net premiums taxable under Section 409 of the Illinois Insurance Code and included on Form IL-1120, Step 4, Line 29.
- The amounts deducted in computing this year’s federal taxable income for the privilege tax, fire insurance company tax, and fire department tax listed on Lines 7a through 7c.
- Completed copies of all forms needed to support 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.
How to file
Complete Form IL-1120, Steps 1 through 7, before completing Schedule INS.
- In Step 1, calculate the pro forma tax imposed by your state or country of domicile using the income amounts from Form IL-1120.
- In Step 2, calculate your income tax reduction limit.
- In Step 3, calculate your tax reductions, following the stop instruction after Line 15.
- Enter the replacement tax reduction from Line 17 on Form IL-1120, Step 8, Line 51. Enter the income tax reduction from Line 20 on Form IL-1120, Step 8, Line 54.
Attach Schedule INS to Form IL-1120. Attach the supporting forms for Line 4 if you did not check the box on that line.
Common mistakes
- Completing Schedule INS before finishing Form IL-1120, Steps 1 through 7.
- Including retaliatory tax in the privilege tax amount on Line 7a. The form specifically says not to include it.
- Omitting the completed supporting forms for Line 4 when you have not checked the box on that line.
- Continuing to use the schedule when Line 15 is greater than Line 12. The stop instruction says you are not entitled to a tax reduction.
- 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 of all taxes 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 calculate the income tax reduction limit?
Multiply the net premiums on Line 5 by 1.75 percent (.0175). Then subtract the total of the deductible tax amounts listed on Lines 7a through 7c. If the result is negative, enter zero on Line 9. Carry Line 9 to 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.