I have received 100k$ foreign gift on different foreign accounts, exempted and declared abroad. I am US resident with a VISA. Should I only fill the FBAR?

[frenchguy]

- Am I going to pay taxes on it?

- Should I fill another application for specifying the fact it was a gift declared abroad?

[DS30 · Accepted solution]

It depends -

You will not pay any taxes on inherited or gifted money because the IRS does not consider this taxable income.

Regarding the amount of the foreign gift -  there may be additional filing requirements required to report this foreign gift to that IRS. If the foreign gifts exceed $100,000 in total during the calendar tax year, you will  need to file  Form 3520 - gift or inheritance from a foreign person (nonresident alien). This form is not supported by TurboTax.

Additionally, you may be required to file Form 8938 - Statement of Specified Foreign Financial Assets, if your foreign assets exceed the amount threshold. This form will be included with your US income tax return filing.

Regarding your FBAR requirement -

If you have foreign bank accounts, you may be required to file a Report of Foreign Bank and Financial Accounts (FBAR) if are a US citizen or resident and::

1. you had a financial interest in or signature authority over at least one financial account located outside of the United States; and
2. the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

Foreign financial accounts consist of all foreign financial accounts that you own separately or jointly or for which you have signatory authority over (such as a foreign business account that is owned by the business but for which you can sign checks or redirect funds).

To be directed to the US Treasury Government Website to prepare a Report of Foreign Bank and Financial Accounts, click FBAR (TurboTax does not support this form)

Here is a link to the IRS related to both the FBAR filing and the Form 8938 filing: IRS - Comparison of Form 8938 and FBAR Requirements

[frenchguy]

Thank you so much!

[DS30]

You are very welcome 🙂

[frenchguy]

Oh one last question: apparently when we are filling the form 3520, we are exempted to fill the 8938. But however, for the year after, we need to report the FATCA (8938). Am I going to be taxed at the end on my gift for the next year?

[DS30]

No Form 8938 is just an informational form that will be included with your return. You will not have to pay any taxes on gifted money.

[frenchguy]

Perfect, thank you again!