Schedule FCI: Foreign Corporation Income of U.S. Shareholder (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Schedule FCI reports a U.S. shareholder’s foreign corporation income, including Subpart F income, Global Intangible Low-Taxed Income (GILTI), other dividends and the gross-up for foreign taxes deemed paid. Business corporations and financial institutions that belong
Who files this form
File Schedule FCI with your Massachusetts tax return if you are a Massachusetts taxpayer who is a U.S. shareholder of a controlled foreign corporation (CFC) or specified foreign corporation (SFC) for federal tax purposes and must report income and deductions attributable to those corporations on the specified federal forms.
Schedule FCI is used for all tax types. All filers must complete the U.S. Shareholder Foreign Income section. Business corporations and financial institutions that belong to a Massachusetts combined group must also complete the Total Dividends of U.S. Shareholder - Massachusetts Combined Group Member section.
What you'll need
Provide completed copies of these 2025 federal forms, or their equivalents, as filed, with all counterparts, supporting schedules and statements:
- Form 5471, including every Form 5471 relating to the foreign corporations reported on Schedule FCI.
- 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 election status, the principal reporting corporation's name and taxpayer identification number, and whether any reported CFC or SFC belongs to the same group.
If claiming the Massachusetts dividends received deduction (DRD), enclose a schedule showing payers, amounts and the percentage of voting stock owned by class of stock.
How to file
Submit Schedule FCI and the required federal forms with your Massachusetts tax return. The supplied text does not give a mailing address or electronic filing directions.
Complete the top portion of the schedule and the U.S. Shareholder Foreign Income section:
- Line 1: Enter Subpart F income from 2025 Form 5471, Schedule I, total of lines 1 through 4.
- Line 2: Enter GILTI from Form 8992, Part II, line 5.
- Line 3: Enter other dividends from 2025 Form 5471, Schedule I, total of lines 5a through 5e.
- Line 4: Enter your 2025 total IRC § 78 gross-up for foreign taxes deemed paid.
If you are a business corporation or financial institution in a Massachusetts combined group, also complete lines 1 through 9 of the combined-group dividends section.
Follow the instructions for your specific Massachusetts tax return to make sure Schedule FCI amounts are correctly reflected on that return.
Common mistakes
- Leaving out federal attachments. Submitting the required federal forms and schedules is part of your Massachusetts filing requirements.
- Not carrying amounts to your return correctly. The instructions remind you to consult your specific Massachusetts tax return instructions.
- Claiming disallowed federal deductions. Massachusetts does not allow deductions under IRC §§ 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 U.S. shareholders and Massachusetts combined-group members must complete that section.
Questions people ask
Is Schedule FCI only for corporate taxpayers?
No. The form says it is used for all tax types. The filing requirement applies to Massachusetts taxpayers who meet the stated U.S. shareholder and federal reporting requirements.
What if I have several Forms 5471?
Report the total number of foreign corporations from which you are reporting income and deductions. Provide all related Forms 5471 with Schedule FCI.
Does Massachusetts allow the federal dividends received deduction?
No. Massachusetts generally allows its own deduction for 95% of dividends received, subject to the exceptions listed in the instructions.
Do combined-group members report only foreign dividends?
No. The combined-group dividends section includes total U.S. and foreign-source dividends, whether deemed or actual, including Subpart F income, GILTI, CFC dividends and any related IRC § 78 gross-up.