Hi, I am a resident alien in U.S., born in Canada. I just (2022) cashed in two long-time Canadian life insurance policies, one a whole life policy bought by my father when I was a child (I am now 67 yo) and another a term policy I bought in the early 1980s. For most of the years, I was able to use dividends spun off from the whole life policy to pay premiums for both policies, so I have not paid premiums for years. When I cashed in the two policies, I paid federal non-resident Canada tax (about $6800 CAN) and received, net, about $19K US. Do I still pay U.S. taxes on this as Other Income or am I exempt? I am guessing Canada has a treaty with US on taxes. What IRS forms do I need to complete? Is there anyone I can consult for help on this?
