Thanks for these questions and answers as they are very informative. I have a sightly different situation pertaining to this topic and they are:
(1) The proceeds of insurance policy is due to maturity instead of surrender
(2) The premiums paid exceeds the proceeds
I understand from this discussion and also from IRS Tax Interactive Assistant interview that the proceeds are not taxable in this case since the premium paid is more than the proceeds. My questions are then,
1. Are proceeds from maturity treated the same as surrender?
2. Do I still need to report this negative 'income'? If so, where and how to report this negative 'income'?
Thanks!
