Great question! Your understanding is mostly correct. As a US tax resident, you generally don't owe US taxes on the premiums you pay or the policy's cash value growth while you're just maintaining the policy. You're also correct about including it on your FBAR since the cash surrender value exceeds $10,000. However, there are a few additional considerations: 1. **Form 8938 (FATCA reporting)** - You may also need to report this on Form 8938 if your total foreign financial assets exceed the filing thresholds (generally $50,000 for single filers living in the US, higher for married couples). 2. **Policy structure matters** - Make sure your policy qualifies as legitimate life insurance under US tax principles. If it's heavily investment-focused or has unusual features, it could potentially be treated as a PFIC (Passive Foreign Investment Company), which would trigger additional reporting and tax complications. 3. **Future tax events** - You're right that taxation typically occurs when you cash out the surrender value or take distributions. The death benefit to your beneficiaries generally wouldn't be taxable to them as US income. Given the complexity of international tax issues, it might be worth having a tax professional review your specific policy to ensure you're meeting all reporting requirements correctly.

One aspect that hasn't been covered yet is the potential impact of tax treaties. Since you mentioned you're a foreign national from your home country, there might be a tax treaty between the US and your country that could affect how your life insurance policy is treated. For example, some tax treaties have specific provisions for life insurance that can provide beneficial treatment or clarify reporting requirements. The treaty might also affect whether certain income from the policy would be taxable in the US versus your home country. Additionally, if you ever decide to move back to your home country while maintaining US tax residency (like keeping your green card), you'll want to understand how the substantial presence test and treaty tie-breaker rules might affect your obligations. I'd suggest looking up the specific tax treaty between the US and your home country - Publication 901 from the IRS lists all current treaties. This could potentially simplify your situation or provide additional protections you might not be aware of.

Just want to point out that $48 tax on a $200 bonus is 24%, which is actually the correct withholding rate for interest income for nonresident aliens on F or J visas. So the withholding amount checks out. Make sure you're filing the right tax return form too - if you were on a J1 visa, you might need to file Form 1040-NR (Nonresident Alien) instead of the regular 1040. The taxation rules can be different depending on your residency status.

Great advice from everyone here! I just wanted to add another perspective as someone who went through a similar situation with missing tax documents from overseas. If you're still having trouble getting the 1099-INT from BoA, you might also try reaching out to their international customer service line - they sometimes have different procedures for overseas customers. The number is usually different from their domestic line and the agents may be more familiar with mailing documents internationally. Also, since you mentioned you're back in your home country, check if your country has a tax treaty with the US that might affect how this income is treated. Some treaties allow for reduced withholding rates on interest income, which could potentially mean you're due a refund of part of that $48 they withheld. One more tip: if you end up using any of the suggested workarounds (Form 4852, manual entry, etc.), keep detailed records of all your attempts to get the official form. Print out emails, note down call dates and reference numbers, etc. This documentation will be helpful if the IRS ever questions the discrepancy. Good luck with your filing!

Have you considered filing for legal separation? Unlike your current situation, which is informal separation, a legal separation is recognized by the IRS and could potentially help with your filing status going forward. It's like being in the middle ground between marriage and divorce - you're still technically married, but the court has formally recognized your separation. This wouldn't fix past filings, but it could clarify your path forward without having to go through a full divorce if that's not what you want. The requirements vary by state, so you'd need to check what's available where you live. In some cases, it might be simpler than you think and could save you from continued tax complications.

I've been following this thread closely because I'm facing a similar situation, and I wanted to share what I learned from consulting with a tax professional last month. The most important question that hasn't been directly answered yet is: Do you have any qualifying dependents (children, parents, or other relatives) who lived with you for more than half of each tax year since 2016? This is absolutely critical because without a qualifying person, you cannot file as Head of Household regardless of your marital or living situation. If you don't have qualifying dependents, then unfortunately you should have been filing as Married Filing Separately for all 8 years. The financial impact could be substantial - I calculated that for my income level, the difference between HOH and MFS was about $1,800-2,200 per year. Here's what I'd recommend based on what my CPA told me: 1. First, determine if you actually had qualifying dependents each year 2. If not, calculate the potential tax difference for at least the last 3 years 3. Consider proactively filing amended returns (Form 1040X) rather than waiting for the IRS to discover the issue 4. If the amounts are significant, you can request a payment plan The good news is that if you voluntarily correct the error, you'll typically avoid accuracy-related penalties (though you'll still owe interest). My tax professional said being proactive usually results in much better outcomes than waiting for an IRS notice.

This thread has been incredibly helpful! I'm dealing with a similar situation where my grandmother set up an irrevocable grantor trust in 2016, and I've been the successor trustee since she passed last year. One thing I learned through this process that might be useful for others: make sure you have a clear understanding of whether your trust qualifies for the step-up in basis. Not all irrevocable trusts automatically get this benefit - it depends on specific provisions in the trust document and whether the grantor retained certain powers. In our case, the trust was structured so that my grandmother retained enough control (through substitution powers) that it remained a grantor trust for tax purposes, which meant we did get the step-up. But I've heard of other families where similar-sounding trusts didn't qualify because of subtle differences in how they were drafted. Definitely worth having a professional review the specific language rather than making assumptions based on general rules about irrevocable trusts.

This discussion has been really enlightening! I'm in a similar boat as a trustee for my elderly father's irrevocable grantor trust, though ours was set up more recently in 2018. One aspect I haven't seen mentioned yet is the importance of understanding the trust's distribution provisions. Our trust has some specific language about mandatory vs. discretionary distributions that our attorney said could affect the tax treatment for beneficiaries. Some trusts require distributions of income annually, while others give the trustee discretion about timing. Also, if anyone is dealing with trust assets that include individual stocks (rather than just mutual funds), be aware that tracking cost basis can get really complicated, especially if there have been stock splits, mergers, or dividend reinvestments over the years. We learned this the hard way when trying to organize our records. The stepped-up basis benefit that others mentioned is huge, but having good documentation ready will make the whole process much smoother when the time comes. It's worth spending some time now getting organized while you're not dealing with the emotional stress of a recent loss.

This is exactly why I always recommend getting professional help for business reorganizations. The tax code around F Reorganizations is incredibly complex and the consequences of getting it wrong can be devastating financially. For anyone considering this path, here are some key questions to ask a qualified tax professional before proceeding: 1. Will the reorganization trigger any built-in gains or other taxable events? 2. How will the transaction affect your basis in the assets? 3. Are there any depreciation recapture issues to consider? 4. What documentation is required to maintain tax-deferred treatment? 5. How will the timing of the reorganization affect your tax obligations? The upfront cost of proper professional guidance is always less than the cost of fixing mistakes later. I've seen too many business owners try to save money on professional fees only to end up with massive unexpected tax bills or compliance issues that take years to resolve. Don't let the complexity discourage you from restructuring if it makes business sense - just make sure you have the right experts guiding you through the process.

I went through a similar situation about 18 months ago when I needed to convert my S Corp to eventually allow for partnership taxation. The F Reorganization route can work, but you're right to be cautious about the complexity. One thing that hasn't been mentioned yet is the potential impact on your state tax obligations. While the federal tax treatment might be clear, some states don't automatically recognize F Reorganizations the same way the IRS does. I had to file additional state forms and pay separate state filing fees that I didn't anticipate. Also, timing is crucial if you have any seasonal income patterns or pending contracts. We had to delay our reorganization by three months because completing it mid-year would have created some messy quarterly tax filing issues. The documentation requirements are no joke either - make sure you keep copies of every corporate resolution, asset transfer document, and valuation report. The IRS can request these years later if they decide to examine the transaction. My biggest piece of advice is to get quotes from at least two different tax professionals. The range in both expertise and pricing was surprising, and having multiple perspectives helped me understand the full scope of what we were undertaking.