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Get your taxes done using TurboTax
According to IRS publication 554, Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. In this case, your premiums of $7717.50 exceeded the payout amount of $3110 so this is not taxable income to you.
Since this is not taxable income, you cannot claim a foreign tax credit for the income taxes you paid to Canada on this endowment.
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‎February 16, 2022
3:46 PM