We cancelled our life insurance policy and we are not sure which area to enter our gains or losses?

A life insurance policy is paid for with after tax dollars. When you cash it in, the money you get back is "your" money that you paid taxes on already. It will never be more than what you have already paid into it over the years.

There are some types of "whole life" policies that accumulate interest or dividends over time. Those *will* be taxable in the year you cash out. But if that's the case, the insurance company will send you a 1099-R reporting that taxable portion, if any. So if you've not received a 1099-R by the first week of Feb, you have nothing to claim or report.