Schedule J: Foreign Dividends (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule J calculates the foreign dividend subtraction reported on Form IL-1120. It lists foreign dividends received, federal special deductions, and the applicable Illinois percentages, and includes the foreign dividend gross-up under IRC Section 78.
Who files this form
Schedule J is used with Form IL-1120 to figure the Illinois foreign dividend subtraction. Attach the completed schedule to your Form IL-1120.
Do not include dividends received from a domestic corporation.
What you'll need
Have these records available to complete Schedule J:
- Your Form IL-1120, including the name shown on that return.
- Your federal employer identification number (FEIN) and tax year ending month and year.
- Federal Form 1120, Schedule C, showing foreign dividends received and federal special deductions. If you did not file that schedule, use the corresponding lines from the federal schedule you filed.
- Details showing the ownership percentage for the corporations whose dividends you report, so you can separate amounts as the lines require.
- If an IRC limitation applies, the federal Schedule C amounts needed for Step 2, including Line 9 and Column (c), Lines 1 through 8.
How to file
Attach Schedule J to Form IL-1120.
- Enter your name as shown on Form IL-1120, your FEIN, and your tax year ending month and year.
- Complete Step 1 using the federal schedule lines identified on the form. Subtract Column B from Column A to get Column C, then multiply Column C by the printed Illinois percentage to get Column E.
- If an IRC limitation applies, complete Step 2 to determine the amounts for Step 1, Column B, Lines 1 through 3.
- Add the Column E amounts on Line 22. Enter the IRC Section 78 foreign dividend gross-up on Line 23.
- Add Lines 22 and 23. Enter the total on Schedule J, Line 24, and Form IL-1120, Step 3, Line 17.
Common mistakes
- Do not include dividends received from domestic corporations.
- If you did not file federal Form 1120, Schedule C, use the corresponding lines from the federal schedule you filed.
- If you had an IRC limitation, complete Column A first, then use Step 2 for the correct amounts in Step 1, Column B, Lines 1 through 3.
- In Step 2, carry the division result on Line 3 to six decimal places.
- Provide the required information. The form warns that failure to provide it could result in a penalty.
Questions people ask
When must I complete Step 2?
Complete Step 2 if federal Schedule C, Line 9, is less than the total of Column (c), Lines 1 through 8, because of the IRC limitation.
What if I did not file federal Form 1120, Schedule C?
Use the corresponding lines from the federal schedule you filed to complete Columns A and B.
Where do I report the foreign dividend gross-up?
Enter the IRC Section 78 foreign dividend gross-up from federal Schedule C, Line 18, on Schedule J, Line 23.
Where does my total foreign dividend subtraction go?
Add Schedule J, Lines 22 and 23. Enter the result on Schedule J, Line 24, and Form IL-1120, Step 3, Line 17.