Question

Foreign Life Insurance Proceeds and Where to Report

Forum|Forum|6 years ago
September 13, 2019
1 reply
0 views

I had a policy overseas for about 12 years and the policy automatically expired and I got some proceeds from that. I am assuming that the proceeds are taxable. However, is this interest, dividend, etc. Where do I report this sort of income on my tax return? I cannot find a answer.

P

pk12_2

Employee

@pooja555 , first Namaste; you need to tell me (a) are you US citizen/Resident ( Green Card ) / Resident for Tax purposes; (b) when did you come here ; (c) was this a whole life insurance and if so how much did did you pay in over the years + what was the amount paid top you when cancelled /lapsed; (d) was the policy a private policy you paid or was it from your employer in India (?); (e) LIC or which insurer ( i.e. public sector or private sector ---- any other information that you can share. For the amounts involved , approximate numbers would be good enough

If it was in the USA, it is only the gain that may be taxable , depending on circumstances.

P

pintuusa1

@pk12_2 - I am interested in knowing about the two scenario - H1b visa holder and GC holder for whole life insurance.
generally most of us gets LIC ( Public Sector) in India ( pretty common), on maturity the proceeds are tax free in India. Do we have to report them to IRS here ?

Few of my friends are on H1B and few on GC, and everyone has the same doubt. I will appreciate your input.