Independent form guide. BrieflyGo is not affiliated with or endorsed by IRS, USCIS, SSA, DOL, or any U.S. government agency. Official forms are sourced from public government websites.
Official form guide
Form 1118-SJ: 1118 (Schedule J)
The IRS Form 1118-SJ (Schedule J) is used to report adjustments for separate limitation income, foreign losses, and treaty-sourced income. The form requires taxpayers to identify each item of other income reported on the form.
Need help with Form 1118-SJ?
Open it in the AI Editor for field guidance, checks, and PDF export.
Need help? AI Editor guides you through every field of Form 1118-SJ.
Start filling →Form Overview
IRS Form 1118-SJ - 1118 (Schedule J)
The IRS Form 1118-SJ (Schedule J) is used to report adjustments for separate limitation income, foreign losses, and treaty-sourced income. The form requires taxpayers to identify each item of other income reported on the form.
Risk Radar
Scan points- 1Ensure that all amounts entered across any new line in the Computer-Generated Schedule section must equal zero.
- 2Failing to identify each item of other income when reporting on the Computer-Generated Schedule section.
- 3Not ensuring that amounts entered across any new line in the Computer-Generated Schedule section must equal zero.
- 4Incorrectly calculating column (vi) on Part I, line 1 using Schedule B, Part II, line 8c.
- 5Failing to use the required category identification format for treaty or 901(j) income in Part IV.
Plain English
This form helps companies track complex international tax issues, specifically how they handle profits or losses from foreign countries and agreements with other nations. It ensures that all separate types of income are correctly allocated and accounted for in the company's overall tax filing.
Submission Date
- Filing date: 2021-01-29 22:10:39
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
AI co-pilot
Fill it faster. Catch mistakes before you file.
What this form is for
- Use this form when calculating adjustments to separate limitation income or (losses) for determining the numerator of a limitation fraction, as detailed in Part I.
- Do not use it when filing routine corporate tax returns; this schedule is designed for specific calculations involving separate limitation losses and foreign/domestic loss accounts.
- Check Form 1118 instead when completing the main form to which Schedule J attaches.
Form selector
Use this form or another form?
Need to report adjustments related to separate limitation income or losses
Use Schedule A to find the base income or loss amounts entered into Part I of Schedule J (Form 1118).
✓ Ensure all columns (i) through (v) are populated with data from the corresponding Schedule A.
Need to report year-end balances for future separate limitation income recharacterization
Use Part II to document future separate limitation income that must be recharacterized as income in other categories.
✓ Confirm the amounts entered in Part II match your internal corporate accounting records.
Need to track overall foreign loss accounts at start and end of year
Use Parts III and IV to show balances related to overall foreign loss accounts for the tax year.
✓ Verify that the beginning and ending balance figures are accurately reported in these parts.
Deadline or filing window
The official source does not provide a specific filing deadline, trigger event, or extension information for Form 1118-SJ.
Checklist
What you need before filling it out
Overall Foreign Loss Accounts
Balances and adjustments for overall foreign loss accounts · Parts III (Instructions p.1)
Separate Limitation Income/Losses
Adjustments are required to determine numerators of limitation fractions · Part I (Form p.1)
Other Income Categories
Taxpayers must identify each item of other income, expanding the schedule if more than one separate category exists · Instructions p.1
Before you submit
- 1Confirm the form uses the current edition, which is Revision December 2020 (12/20).
- 2Ensure that for every line entered, the total amounts across that line equal zero.
- 3Verify that all items of other income are individually identified on the form.
- 4Complete Line 2 by showing the pro rata share allocation of separate limitation losses among applicable categories using the correct calculation formula.
- 5If overall foreign losses reduced U.S. source income, enter these amounts as positive numbers in line 4, columns (i) through (v).
- 6Enter the total amount of overall foreign losses that reduced U.S. source income on line 4, column (vi) as a negative number.
- 7If electing to recapture an overall foreign loss balance, ensure the required statement detailing percentages and dollar amounts is attached to Form 1118-SJ.
- 8Review Line 9 to confirm any current year income from previously limited categories has been recharacterized.
How to file this form
- 1Determine if multiple separate categories of “other income” exist; if so, expand Schedule J (Form 1118) accordingly.
- 2Complete Part I by entering the required income or (loss) from column 18 of the corresponding Schedule A for each applicable separate category.
- 3Use Parts III and IV to show the balances in the overall foreign loss accounts and domestic loss accounts, including any current year adjustments.
- 4Attach the completed Schedule J to Form 1118 when submitting the return.
Known limitations
- 1The ordering of adjustments in Part I requires checking Regulations section 1.904(g)-3 for detailed information.
- 2Special ordering rules apply that impact the steps necessary to complete Schedule J (Form 1118) if the corporation is required to recognize gain it would not have otherwise recognized.
- 3The previous paragraph regarding dispositions of stock in a controlled foreign corporation (CFC) applies only after October 22, 2004, and references section 904(f)(3)(D).
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition of the IRS Form 1118-SJ is Revision December 2020. For the latest information regarding developments related to Schedule J (Form 1118), users should visit IRS.gov/Form1118.
What changed or needs a fresh check
- Edition date — confirm the revision is December 2020.
- Fee — Not stated in the official source.
- Mailing address — Not stated in the official source.
- Signature — Not stated in the official source.
Quick Facts
Downloads
After you file
- 1Keep a copy of the completed Schedule J (Form 1118-SJ) for your records.
- 2Retain documentation supporting all adjustments made in Part I, especially those referencing Regulations section 1.904(g)-3.
- 3If you used complex calculations like pro rata shares, retain detailed work papers showing the calculation steps (e.g., dividing $4,000 by $5,000).
Sources
- SRCInstructions p.1 — Use Part I to show adjustments to separate limitation income or (losses) in determining the numerator of the limitation fraction for each separate category.
- SRCInstructions p.1 — Use Part II to show the year-end balances of future separate limitation income that must be recharacterized as income in other separate categories.
- SRCInstructions p.1 — For columns (i) through (v), enter in each applicable column, the income or (loss) from column 18 of the corresponding Schedule A for that separate category.
- SRCInstructions p.2 — If the corporation's combined separate limitation losses do not exceed its combined separate limitation income, the pro rata share is calculated as: (Separate limitation income / Combined separate limitation income from all categories with positive income) x Separate limitation loss being allocated.
- SRCForm p.1 — The form includes columns for adjustments to five types of income/loss: Section 951A income (i), Foreign branch income (ii), Passive category income (iii), General category income (iv), and Other income* (v).
- SRCInstructions p.2 — Special ordering rules apply that impact the steps necessary to complete Schedule J (Form 1118) if gain is required to be recognized.
Common confusion points
How do I calculate the pro rata share of separate limitation loss?
The calculation involves adding all separate limitation losses across line 1, then adding all separate limitation income amounts across line 1. If combined losses are less than combined income, the pro rata share is (Separate limitation income / Combined separate limitation income from all categories with positive income) x Separate limitation loss being allocated.
If combined separate limitation losses exceed combined separate limitation income, the pro rata share of each separate limitation loss to allocate to each category with positive income must be calculated.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- IRS.gov/Form1118
Questions about IRS Form 1118-SJ
What is IRS Form 1118-SJ used for?
This form helps companies track complex international tax issues, specifically how they handle profits or losses from foreign countries and agreements with other nations. It ensures that all separate types of income are correctly allocated and accounted for in the company's overall tax filing.
Who must file IRS Form 1118-SJ?
The source does not specify a required filer category, but the form tracks records for corporations managing separate limitation income and overall foreign loss accounts.
What information does IRS Form 1118-SJ require?
Part I shows adjustments to separate limitation income or losses. Part II reports year-end balances of future separate limitation income that must be recharacterized as income in other categories, while Part III tracks overall foreign loss accounts.
How do I complete IRS Form 1118-SJ?
Taxpayers must first complete Part I to show adjustments to separate limitation income or losses, by entering amounts from corresponding Schedule A and Schedule B sections. Next, the filer completes Part II to report future separate limitation balances, followed by detailing foreign loss accounts in Part III and treaty/other incomes in Part IV.
What happens if IRS Form 1118-SJ is filed incorrectly?
The source does not provide information regarding penalties or consequences for incorrect completion of Form 1118-SJ.
Source transparency
Copyright & Licensing - US Government Forms
BrieflyGo links to and explains official public form sources. We are not a government agency, and this page is for general form guidance, not legal advice.
Understand the agreement before you sign it.
Review risky clauses in plain English, fix the document, and keep it moving toward signature.