Reporting dividends on foreign whole-life investiment-linked insurance policy

[anuraguppal]

Hi All,

I am a GC holder and resident of US. My wife holds a Manulife whole-life investment-linked insurance policy  in Singapore. She gets dividends every year, which are reinvested towards the growth of the policy. Since this is not in US, we dont get issued a 1099-DIV. My question is - Do we need to report this as part of my return ? If so where in Turbo Tax (do i report this just as i was issued an 1099-DIV?)

[Mike9241]

they are not dividends in the same sense that you get dividends on stocks. your "dividends" from the company come from having investment returns that exceed its needs. so what you are getting is a return of your premium. they can be taxable if they exceed the premium paid. any interest earned on accumulated dividends is taxable. 

[MinhT1 · Accepted solution]

In the US, dividends from whole life insurance policies are not taxable income you. They are considered as a partial return of your premiums paid and you do not report them on your tax return.

[anuraguppal]

Thanks MinhT1. Appreciate your prompt response.  For my reference, is there any official guidance (e.g. IRS website etc) where this view is confirmed.

[anuraguppal]

Thanks for the prompt response, Mike! Your answer seems aligned with MinhT1's view. In my wife's case, they do not exceed the premium paid. So i will not be reporting them as part of my returns