Schedule J: Foreign Dividends (2025)
Illinois · Illinois DOR · Used for tax years 2025
Illinois Schedule J figures the subtraction a corporation may take for dividends received from foreign corporations on its Illinois return.
Who files this form
Schedule J is the attachment to Form IL-1120 used to figure the Illinois foreign dividend subtraction. Attach the completed schedule to your Form IL-1120.
Complete Step 2 only if you had the IRC limitation described on the schedule.
What you'll need
Have these available to complete Schedule J:
- Your Form IL-1120, including the name shown on that return.
- Your federal employer identification number (FEIN) and the month and year your tax year ends.
- Federal Form 1120, Schedule C, for the foreign dividend amounts and federal special deductions. If you did not file that schedule, use the corresponding lines from the federal schedule you filed.
- Information showing your ownership percentage in the foreign corporations, and in captive REITs where applicable, so you can place dividends on the correct lines.
How to file
Attach Schedule J to your Form IL-1120. The supplied form does not give a mailing address or e-filing directions.
To complete the schedule:
- Enter your name as shown on Form IL-1120, your FEIN, and your tax year ending month and year.
- In Step 1, enter the foreign dividends and federal special deductions from the specified federal schedule lines. If the IRC limitation applies, complete Step 2 to determine the amounts for Step 1, Column B, Lines 1 through 3.
- Subtract Column B from Column A to get Column C. Multiply Column C by the printed Illinois percentage in Column D to get Column E.
- Add Column E amounts on Line 22. Enter the IRC Section 78 foreign dividend gross-up from federal Schedule C, Line 18, 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
- Including domestic dividends: The form says not to include dividends received from a domestic corporation.
- Skipping the IRC limitation adjustment: If the limitation applies, complete Step 2 before finishing Step 1, Column B, Lines 1 through 3.
- Using the wrong federal references: Use the specified federal Form 1120, Schedule C lines, or corresponding lines from the federal schedule you filed.
- Leaving out required information: The form warns that failure to provide required information 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.
How many decimal places should I use in Step 2?
Carry the result of dividing Step 2, Line 1, by Line 2 to six decimal places.
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 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.