Schedule FCI: Foreign Corporation Income of U.S. Shareholder (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule FCI reports a U.S. shareholder’s foreign corporation income, including Subpart F income, global intangible low-taxed income (GILTI), other dividends from controlled foreign corporations, and the gross-up for foreign taxes deemed paid. Business corporations
Who files this form
Massachusetts taxpayers must file Schedule FCI with their tax return if they are U.S. shareholders of a controlled foreign corporation (CFC) or specified foreign corporation (SFC) for federal tax purposes and are legally required to report related income and deductions on the specified federal tax forms.
Schedule FCI is used for all tax types. All filers must complete U.S. Shareholder Foreign Income. Business corporations and financial institutions that belong to a Massachusetts combined group must also complete Total Dividends of U.S. Shareholder - Massachusetts Combined Group Member.
When it's due
For the 2024 tax year, the form lists April 15, 2025 as the installment payment due date for individual taxpayers who elected installment treatment of deemed repatriated income. To find the amount due, refer to your 2019 Schedule FCI-I, Part C, line 6e, and/or your 2024 payment voucher.
The supplied text does not state a general filing deadline for Schedule FCI.
What you'll need
Provide completed copies of these 2024 federal forms, or their equivalents, as filed, with all counterparts, supporting schedules and statements:
- Form 5471 for each applicable foreign corporation.
- Form 8992 and Schedule B (Form 8992).
- Form 8993.
- Schedules K-2 and K-3.
- Any other related or equivalent federal form, schedule or statement.
You will also need your taxable-year dates, shareholder name and taxpayer identification number, and the number of foreign corporations for which you are reporting income and deductions.
Combined-group members must provide their group election status, the principal reporting corporation's name and taxpayer identification number, and whether any reported foreign corporation belongs to the same group.
If claiming the Massachusetts dividends received deduction, enclose a schedule showing payers, amounts and the percentage of voting stock owned by class of stock.
How to file
File Schedule FCI with your Massachusetts tax return, along with the required completed federal forms and supporting materials.
Complete the top portion and the U.S. Shareholder Foreign Income section. Complete the combined-group dividends section if you are a business corporation or financial institution that belongs to a Massachusetts combined group.
Refer to the instructions for your specific Massachusetts tax return to ensure Schedule FCI amounts are correctly reflected on that return. The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving out federal attachments. Submitting the required federal forms and schedules is part of your Massachusetts return filing requirements.
- Not checking your main return instructions. The text reminds taxpayers to check their specific Massachusetts return instructions so Schedule FCI amounts are reported correctly.
- Claiming disallowed federal deductions. Massachusetts does not allow the deductions under IRC sections 245A, 250 and 965(c) for foreign income or the related gross-up.
- Completing the combined-group dividends section when it does not apply. Only business corporations and financial institutions that are Massachusetts combined-group members must complete that section.
Questions people ask
Is Schedule FCI only for corporations?
No. The form says it is used for all tax types, and the filing requirement can apply to both business and personal income taxpayers.
Where do I find the Subpart F income amount for line 1?
Use the total of lines 1 through 4 of Schedule I on your 2024 federal Form 5471.
Where do I find the GILTI amount for line 2?
Use the amount from federal Form 8992, Part II, line 5.
Do I need to attach every applicable Form 5471?
Yes. Report the total number of foreign corporations for which you are reporting income and deductions, and provide all related Forms 5471 with Schedule FCI.