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Does the IRS require the reporting of the increase in the cash surrender value of a life insurance policy? If so, what form? This is for a Canadian citizen with a green card filing form 1040.

Thanks for your assistance and your prompt responses.

Nothing peculiar, just trying to minimize US tax.

In summary, if filing 1040 HoH, I would include world income, itemize or take standard deduction, and include Form 8833 disclosing treaty position i.e. Article XXV (1). I just need to reduce US tax to a level just below Cdn tax.

Thanks for youra ...

Assuming I am filing 1040 HOH, I presume I can itemize deductions instead of taking the std deduction. Am I required to disclose my treaty position? Any special form required for this?

Thanks again for your help.

If I understand correctly I have 2 choices:

1) Under paragraph (1) the spouse with US income files HOH on form 1040 reporting world income even though both spouses are NR.

2) Under paragraph (3) file MFJ using 1040 rates and reporting US income only on 1040NR

Why are we reporting world income ...

It is my understanding that a US citizen living in Canada permanently with his NRA spouse and child can be "considered unmarried for head of household purposes" and use HOH filing status unless they elect to treat the NRA spouse as a resident alien for the whole year. Would the same situation apply ...