☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Jan 22, 2024 2:21:24 PM

Is maturing of whole life investment-linked insurance policy outside of US considered foreign income ?

I am a GC holder and resident of US. My wife held a Manulife whole-life investment-linked insurance policy in Singapore.That policy matured in 2023, and with the investment growth, the total matured sum got credited in Singapore bank account. We transferred this amount to her US bank account.

 

Two questions :

1. Do i need to declare this anywhere in our 2023 returns?

2. By any chance, does the 'growth' part of the matured sum which got credited to her Singapore bank account be considered foreign income ? Is it taxable?

0 1 196
1 Replies
Level 15
Jan 22, 2024 7:57:39 PM

see this blog. You may need to consult a tax pro for this issue.

yes this is foreign income. at least some portion is taxable. 

https://www.goldinglawyers.com/foreign-life-insurance-taxation-fbar-life-insurance-reporting/#:~:text=Foreign%20Life%20Insurance%20Taxation%3A%20In%20many,of%20Policies%20for%20U.S.%20Tax%20purposes.&text=Foreign%20Life%20Insurance%20Taxation%3A,for%20U.S.%20Tax%20purposes.&text=Insurance%20Taxation%3A%20In%20many,of%20Policies%20for%20U.S.