How do I report income from cashing out a foreign life insurance policy in Finland? How do I get credit for the taxes already paid in Finland for the income?

Enter the income, then enter the foreign tax paid. The programs have some variation. Go with what is closest if not exact Follow these steps:

To enter the income:

1. go to the federal income section
2. scroll to the bottom or  select uncommon situations or see more
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description  - whatever you want to say, something like -Finland Life Insurance cashed out
9. Amount, enter your amount of income
10. Continue

 

Next, enter the foreign tax paid.

To enter the tax: 

• select Deductions & Credits.
• select See all tax breaks or show uncommon or dropdown
• locate Estimates and Other taxes Paid section
• select  Foreign Tax Credit 
• enter your information