Where to report gains from foreign insurance policy

[sourav93]

I have some bonus for foreign insurance policy and I have reported that on form 8938. Is bonus considered gains or interest? Where should I report this on 1040? Is it similar to how we report stock gains i.e. on Schedule D? How to do that on Turbotax?

[ThomasM125]

It could be capital gain income or interest income depending on the origin of the income. If it wasn't reported to you on a tax form and you don't know specifics on where the income originated from you can report it as "Other Income". You will find that entry in the Less Common income section of TurboTax, and then Miscellaneous Income, then Other Reportable income.

You have to enter "Yes" to the question regarding Did you receive any other taxable income? Then you can enter the income along with an explanation as to what it is for:

If you paid any foreign taxes on the income, you can see if you qualify for a foreign tax credit in the Deductions and Credits section of TurboTax, then Estimates and Other Taxes Paid, then Foreign Taxes.

[pk]

@sourav93 , while agreeing with the general answer by my colleague @ThomasM125 ,  if you are talking about a foreign  life insurance, generally you do not declare anything till a distribution occurs.  Depending  how regulated it is  , you may be talking about a PFIC and a requirement  to Mark-to-market.

Please provide more details : such as  what is it, name of the Insurance Company , located in which country,  how long is your term, has it matured and therefore  ready for distribution ,  your own immigration status   US citizen/ GreenCard/ Resident for Tax Purposes) and your  , at least directional  longer term plans  ( i.e. are you going to be back in your home country / away from US at the time of maturity/distribution of the proceeds.

Note that if  you feel that  this is not of general interest you are welcome to PM me ( just no PII, please  ).

pk