Interest income is taxed at ordinary income tax rates. You must make sure that you file the FBAR and Form 8938 if they apply to you.
The easiest way to to report the taxable income from the life insurance distribution is as follows:
-
Click on Federal on the left hand side of your screen
-
Click on Wages & Income
-
Scroll down to Less Common Income
-
Scroll down to Miscellaneous Income , 1099-A, etc
-
Click on Start or Update
-
Scroll all the way down to Other Reportable Income
-
Click on Start
-
Add a Miscellaneous income item
-
Input description of your life insurance
-
Input your Taxable proceeds
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
