Is foreign life insurance capital proceeds (no death) taxable?

[Xian2]

I had life insurance in Germany which contract came to end, and they pay back the premiums and interest earned. This is not a receipt of life insurance due to death. In Germany this income is not taxable. Now that I am US resident and file taxes in US, how do I have to treat this income on my tax return. If it is taxable, will it be treated as investment income with Capital gain rate or as regular income? 

[ToddL]

There is no U.S. tax on the return of premiums, but the interest income is taxable.

Enter it in the "Interest on 1099-INT" interview of Federal Tax > Wages and Income > Interest & Dividends. 

(If paid in Euros, see: Currency Conversion - any reasonable method is acceptable).

[Dub74]

Just to be clear, the cash received has to be reported as interest and dividends but not as ordinary income ? 

in Foreign institutions the statements do not have the information needed in form 1099-INT.

Foreign Insurance policies are  usually tax free in the country of origin, and the final statement has: Premium paid, and proceeds after reaching maturity. so is this treated as capital gain?

[KarenJ2]

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:

1. Click on Federal on the left hand side of your screen 

2. Click on Wages & Income 

3. Scroll down to Less Common Income 

4. Scroll down to Miscellaneous Income , 1099-A, etc 

5. Click on Start or Update 

6. Scroll all the way down to Other Reportable Income 

7. Click on Start  

8. Add a Miscellaneous income item 

9. Input description of your life insurance

10. Input your Taxable proceeds