Hi
I have a foreign life insurance policy called ICICI prudential life insurance.
Each year i pay about $1882 as premium on it. It does not pay me back anything- just a usual policy to be used to get money at time of death.
what do i have to do with this in US taxes?
I have this since 2021. I have been filing taxes with a consultant of HR block except this year where i used TurboTax.
He did not mention anything that i have to do.
please let me know.
The cash value of your foreign life insurance policy is considered a foreign financial asset.
You'll need to file Form 8938 with your tax return if your total foreign financial assets exceed the thresholds specified on page 4 of this IRS document.
You'll also need to file a FBAR if your total foreign financial assets exceed $10,000 at anytime during the tax year. See this FinCen document.
Hi,
how can i find cash value?
i dont get any money out of it. It is a simple insurance that would pay my nominee a lumpsum money at the time of death.
i have to keep paying premiums for 7 years. That is pretty much about it.
A life insurance policy is not reported on your taxes unless it has cash value and you are filing Form 8938. Many insurance policies have no cash value.
Cash value life insurance is generally not taxable as it grows within the policy. However, taxes may apply to withdrawals, loans, or surrenders that exceed the total premium payments made, so it's essential to understand the specific rules and consult a tax advisor for guidance.
So as long as you don't withdraw the money, you are fine