My Souses Father (China) has gifted us 120K in total in 2020. The gifts were direct to our joint account. Will we need to file the 3520 form? Will we need to report as income? Will need to pay tax on this gift? (Several Payments)
Gifts received are not reported on tax return, regardless of the amount received.
However, you do need to report the gift received to the IRS since it was received from a foreign individual and the amount is greater than $100,000. You need to use IRS Form 3520 which is an informational form only, not a tax return.
IRS Form 3520 - https://www.irs.gov/forms-pubs/about-form-3520