Dear TurboTax Community,
2022 is coming very soon and I hope you will have a great holiday season and Happy New Year!
I would need some help or better understanding about Form 3520.
Instructions for Form 3520 (2021) | Internal Revenue Service (irs.gov)
4. You are a U.S. person who, during the current tax year, received either:
a. More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests; or
According to the instruction, it seems like my wife needs to file this form, please correct me if I am wrong and here is what happened in 2021.
We have been using married filing jointly for our ordinary income. During 2021, my wife received few gifts in the cash form from 3 non-resident alien individuals as show below:
Non-resident alien individual (name A) sent an international wire of $50,000 in January 2021.
Non-resident alien individual (name B) sent an international wire of $50,000 in June 2021.
Non-resident alien individual (name C) sent an international wire of $50,000 in November 2021.
In total, my wife received $150,000 in 2021. Name A and B are married couples, and C is their son. They are my wife’s relatives.
Question 1:
Does my wife need to file Form 3520? My understanding is that per instruction 4.a, if the foreign persons are related to each other, my wife should file Form 3520 since the total is over $100,000.
Question 2:
Since my wife was the only person to receive the gifts (wires), even we are filing married jointly, we do NOT need to include my name on Form 3520. Is this statement correct?
Question 3:
If we need to file Form 3520, since it will be the first time, would you please kindly walk us through how to fill in the information out based on our situation?
We greatly appreciate your help and look forward to hearing back from you,
Thank you,
Leo and Emily
