Question

Which schedule and line should I enter for reporting other income type of foreign financial assets on Form 8939?

Forum|Forum|6 years ago
March 20, 2020
1 reply
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I have foreign endowment insurance income. I followed the procedure to enter "Other Reportable Income" for this income, as shown below. Then, when I come to the section reporting my foreign accounts. I need to file Form 8938. I selected "Other Income" and enter the account for "Amounts Attributable to Foreign Financial Accounts". Then, it asked me to enter the "Schedule and Line" for this "Other Income". The example showed by TurboTax is "Form 1040, Line 21". However, I checked another post (https://ttlc.intuit.com/community/taxes/discussion/how-do-i-report-foreign-life-insurance-policy-surrender-proceeds-without-a-1099-r/01/1307043#M472509), it says that it should be "Schedule 1, Line 8".

So, my questions are:
1. Should I choose "Other Income" for this type of insurance income when reporting my foreign financial account?

2. If yes, then, which schedule and line should I enter, "Form 1040, Line 21" or "Schedule 1, Line 8"?

Thank you very much.

Click on Federal
Click on Income & Expenses
Scroll to the bottom of the "Your income and expenses" page, and click on "Less Common Income"
Click on "Show more"
At the bottom of the page, next to "Miscellaneous Income..." click on Start/Revisit
Other reportable income - click on Start, then answer Yes
Give a description and enter amount of income from the policy surrender

This amount will also be reported on line 8 of Schedule 1 (Form)

TurboTax Deluxe Online

R

reneerexAuthor

To be more specific:

The income from my foreign endowment insurance policies are:

1. One policy is matured in 2019. I received the total payment $6012. It includes premium I paid ($4309) and maturity survival money ($1859).

2. The second policy is still active, but I don't need to pay premium. I received the annual survival money $157.

Will the type be different for the two policies? Or, they are all "Other Income" as I entered them as "Other Reportable Income" in the section?

Thank you very much!

SusanY1

You will enter it all as other income in the section that you describe. For the entries on Form 8398, you will indicate that it is Other Income from Other Foreign Assets and you will list it as both Form 1040, Line 21 and Schedule 1, Line 8.

Here is an example of what that will look like in the TurboTax entry screens for Form 8938:

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R

reneerexAuthor

Hello @SusanY1

Thank you very much for your reply. I have two related questions.

1. The payments were deposited to my foreign bank account. Since I already reported this income as "Other Income" in form 1040, Line 21 and schedule 1, Line 8, I don't need to report these income separately for the bank account. I mean, I will only report the interests from the foreign bank account. Is that correct?

2. In 2019, I moved from CA to this state. The incomes were deposited to my foreign bank account when I was in CA. For state tax report, should I report these foreign incomes totally for CA?

Thank you very much.

Best regards,

Renee