How to report maturity amount received for Foreign ULIP policy while filing taxes

[dvb7]

Hi,

I am a US Resident & doing  tax returns as "married filing jointly". I have taken ICICI Pru Elite Life II plan ( ULIP) in Dec 2014 and the policy matured in 2024.  I paid the premium amount using after-tax money.

I received the matured amount in Dec 2024.   I will be filling FBAR to declare this amount. 

I am filing taxes on my own using Turbotax & H&R Block for a while and i don't find any forms to enter this type of income. 

I would like to know :

1. How can I report this money during tax filing ? Is it considered as investment or income?

2. How to calculate the gains I received ?

3. what forms need to be filled to report this money? 

3. As per maturity statement "Tax deducted at source" is showing as 0.  Do I need to wait to know whether there are any taxes to be paid in India and use that money for Foreign tax credits?

Please suggest.  Thank you in advance.  

[MarilynG1]

You could reach out to the insurance company.  Normally, this type of distribution is reported on a Form 1099-R, with the proceeds/investment amounts listed.

If they are not issuing a 1099-R, the earnings would be the difference in the amount of premiums you paid and and the proceeds you received.

If this applies, and you can calculate the earnings, you could report this amount as Miscellaneous Income > Other Reportable Income and enter a description and amount.

Yes, you need to determine if you'll be paying taxes in the foreign country (and the amount), in order to claim a Foreign Tax Credit.  If no tax will be assessed, you can report the income on your 2024 return.  If tax will be assessed later, you can request an extension to file so you can report both income/foreign tax paid on your 2024 return. 

Here's more info on Claiming the Foreign Tax Credit.

@dvb7 

[dvb7]

@MarilynG1  Thanks for the information. ICICI Purdential is foreign company and they are not providing form 1099-R.  Since this is ULIP ( part of it is investment & insurance), does it need to be declared as ordinary income or investment type?

[MarilynG1]

Doesn't matter; it's all taxed the same (except Capital Gains, which doesn't apply).  

Reporting it as Other Income categorizes it as ordinary income.  

@dvb7