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Cash Gift from Parents Overseas
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I am not convinced with the answer given by Turbo Tax Employee. The US tax rules (in best of my knowledge) says that If a foreign citizen/residents want to send a gift (cash etc) to a US Citizen/legal resident and amounts will be less than $100000 then there is no US tax requirement but in case amount exceed $100000 then US Citizen/legal resident have to report in Form No. "3520" to IRS. But I advise always file form 3520 (whatever the amount) to support of your bank account trail for future reference. There will be no tax at all in the above situation.
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Separately, any US person (citizen, resident alien, etc.) who receives a gift from a non-US person must use form 3520 to report the gift, if the total of all gifts received is more than $100,000, or if the gift is more than $15,000 and is from a foreign corporation rather than a person. There is no specific tax owed, but the IRS wants to keep track of the movement of large amounts of money and also make sure that it is not wages disguised as a gift.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/Businesses/Gifts-from-Foreign-Person">https://www.irs.gov/Businesses/Gifts-from-...>
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Hello Gurnawaz_buttar1,
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement. If the individuals have already paid the tax on this amount, you are not required to pay tax on this gift income.
While there is no actual limit to the amount of gifts you can receive every year, there is an annual exclusion, and any amount under that amount, does not have to have taxes paid on the gift. The amount for 2013 was $13,000; keep in mind that this amount changes on a yearly basis.
Thank you for using TurboTax, and have a wonderful day!
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