How and where to report Foreign Life Insurance Proceeds

[jd1484471]

I had a whole life insurance policy (icici pru) overseas for 10 years. I paid premiums of 2 lacs per year for the first 5 years starting 2013. When I bought the insurance, I was a `resident for tax purposes`, but now I'm a US citizen. I understand that the policy's proceeds are tax-free in India but are taxable in the US. I received the lump sum amount on the date of maturity last year, which includes the original amount and the profit. I'm not sure how to classify this payout (net profits): Is it considered interest or dividends? And where should I report this income on my tax return ?  Appreciate your quick response.

[DaveF1006 · Accepted solution]

I would report this as other income. Just remember when you report, only the profit is taxable, which may include interest or dividends.

1. Log into your account
2. Select Wages and income>other income
3. Miscellaneous Income, 1099-A, 1099>start
4. Scroll to the bottom of the page to Other Reportable Income
5. Other taxable income, answer yes
6. Then give a brief description of the income and the amount listed. List this as "Profit Earned on Surrender of a Foreign Whole life policy"