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?

[AmyC]

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