Life insurance cash on policy maturity

[dsatya]

Do I need to pay income taxes in US if I get life insurance maturity money from another country (India) ?

[Cindy4]

Hi @dsatya !

The money from the policy would be taxable if it is investment or earned income, rather than a return of principal.  Money returned that was used to make the premium payments would not be.  If the payment is in the form of annuity payments, dividends, interest, or some other type of income generated from the policy, it would be.

As a friendly reminder, there may be other potential foreign account reporting requirements.