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sapatil71
New Member

As a US citizen living in the US, do I need to report or pay tax on a cash gift received from a non-US citizen sibling living abroad?

The amount of cash gift is expected to be about  $30, 000 each from two of my siblings
1 Best answer

Accepted Solutions
ToddL99
Expert Alumni

As a US citizen living in the US, do I need to report or pay tax on a cash gift received from a non-US citizen sibling living abroad?

No, you do not need to report or pay tax on a cash gift received from a non-US citizen as long as the gifts do not exceed the threshold for reporting (aggregate amount greater than $100,000).

 

 

From the IRS article on Large Gifts or Bequests from Foreign Persons:

 

You are required to report the receipt of foreign gifts or bequests only if the applicable thresholds apply.  For purposes of determining the reporting thresholds, you must aggregate gifts received from related parties.  See the instructions to Part IV of Form 3520 for more information; see also Section VI of Notice 97-34 PDF.

  • For gifts or bequests from a nonresident alien or foreign estate, you are required to report the receipt of such gifts or bequests only if the aggregate amount received from that nonresident alien or foreign estate exceeds $100,000 during the taxable year.  If the gifts or bequests exceed $100,000, you must separately identify each gift in excess of $5,000. 

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4 Replies
ToddL99
Expert Alumni

As a US citizen living in the US, do I need to report or pay tax on a cash gift received from a non-US citizen sibling living abroad?

No, you do not need to report or pay tax on a cash gift received from a non-US citizen as long as the gifts do not exceed the threshold for reporting (aggregate amount greater than $100,000).

 

 

From the IRS article on Large Gifts or Bequests from Foreign Persons:

 

You are required to report the receipt of foreign gifts or bequests only if the applicable thresholds apply.  For purposes of determining the reporting thresholds, you must aggregate gifts received from related parties.  See the instructions to Part IV of Form 3520 for more information; see also Section VI of Notice 97-34 PDF.

  • For gifts or bequests from a nonresident alien or foreign estate, you are required to report the receipt of such gifts or bequests only if the aggregate amount received from that nonresident alien or foreign estate exceeds $100,000 during the taxable year.  If the gifts or bequests exceed $100,000, you must separately identify each gift in excess of $5,000. 
sapatil71
New Member

As a US citizen living in the US, do I need to report or pay tax on a cash gift received from a non-US citizen sibling living abroad?

Todd, thank you so much for your response along with the attachment for the IRS article.

 

Much appreciated and obliged!!

 

Shirish

Sarah1702
Level 1

As a US citizen living in the US, do I need to report or pay tax on a cash gift received from a non-US citizen sibling living abroad?

Good day, ToddL99
please advise does it matter whether I received those gifts by Western Union/MoneyGram directly to my Bank Account/Cash pick-up?
Cause I received a few transfers/gifts from my brother in the other country (each less than $5,000 and overall less than $10,000).

Thank you in advance for your help!!

ErnieS0
Expert Alumni

As a US citizen living in the US, do I need to report or pay tax on a cash gift received from a non-US citizen sibling living abroad?

The gift rules described by @ToddL99 are the same whether your received those gifts through wire transfer or directly from your bank.

 

Transfers by Money Services Businesses (MSBs) are subject to the U.S Bank Secrecy Act.

  1. If an MSB provides money orders or travelers checks for cash of $3,000-$10,000, inclusive, to the same customer in a day, it must keep a record.
  2. If an MSB provides money transfers of $3,000 or more to the same customer in a day, regardless of the method of payment, it must keep a record.
  3. If an MSB provides currency exchanges of more than $1,000 to the same customer in a day, it must keep a record.

Refer to Bank Secrecy Act Requirements

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