I have some questions about tax implication on insurance policy while I am working in U.S. on contract for 3-years or a longer period.
1. My mom is a Canadian citizen and living in Canada. She has an Canadian insurance policy in Canada. She is the policy holder and I am the insured person. Beneficiary is my mom. Do I need report this type of policy in U.S. Federal (1040) and States tax returns?
2. She also has purchased another insurance policy in Canada and named me as one of beneficiaries (10%). Do I need to report on my Federal and States return? And if touch wood, she passed away while I am working in U.S., would I need to report the death benefit payment to me from the insurance company in my U.S. 1040 tax return and subject to Federal and States taxes?
3. She also has a small amount of insurance policy purchased in China and I am also a beneficiary (10%), would I need to report and be taxed on the death benefit payment in case she passed away? Hope to know if it is complicated on tax reporting, if it does, I may ask her to remove my name.
Thanks.
Tax on Canadian and non-canadian issued insurance policy
Moderator: Mark T Serbinski CA CPA
Re: Tax on Canadian and non-canadian issued insurance policy
I know of no reason whey you would have to report thsi income.
The only danger is for those who purchase an insurance policy in one country while THEY are resident in another. This is not your case.
The only danger is for those who purchase an insurance policy in one country while THEY are resident in another. This is not your case.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Tax on Canadian and non-canadian issued insurance policy
thanks nelsona.
Just to confirm in #1, even I am the insured person (not policy holder and beneficiary), I don't have to report any annual cash value increase of that insurance policy in my U.S. tax return?
Just to confirm in #1, even I am the insured person (not policy holder and beneficiary), I don't have to report any annual cash value increase of that insurance policy in my U.S. tax return?
Re: Tax on Canadian and non-canadian issued insurance policy
no.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Tax on Canadian and non-canadian issued insurance policy
Thanks a lot nelsona
It is great to know that I don't need to report to IRS and States! so worry before.
much appreciated.
It is great to know that I don't need to report to IRS and States! so worry before.
much appreciated.