Do I need to pay tax with foreign wire transfer received from parents (non-US residents/citizens) living in another country?

[KrisD15]

Leave 2a blank since this was not from a foreign trust and then fill out Part IV with the date and amount on line 54. 

The bank that received the funds sent documents to the IRS with the information about where it came from. You just need to report it so the government can trace it. There is no tax due on it. 

[rzhang63]

So just to be clear, I don't need to report the funds received (whatever the amount is) using Form 3520 if I'm an international student with F1 visa (not US citizen and no green card), right?

[DaveF1006]

According to this IRS link, you would only report this if you are a US person, meaning a resident or resident alien.

[trics95]

hi, my parents both live outside of US(non citizen, residence).  8 years ago my mother opened an account with me as the beneficiary, so i take care of the account for her.  due to certain event, they are thinking about transferring their life savings over here, so here's my question:

 the transfer will be a large sum, they are wondering if they will need to pay taxes after the money gets in the account.  maybe not them, but since my name is on the account as well, would i have to pay any taxes on that?

[SusanY1]

The transfer of funds to you, itself, is not taxable.  However, if the transfer exceeds $100,000 (U.S.) and it is being deposited into an account in your name only, it would be a reportable gift from a foreign person.

However, it should not cause any tax due (unless your parents are in a very small group of "covered expatriates", which doesn't seem like it applies here.)   You can learn a bit more about that reporting here: Gifts from Foreign Persons.  

After the money is transferred, any income that it generates in the form of interest, dividends, or capital gains is taxable income to you. 

@trics95

[MB1982]

Is the limit of receiving a sum $100,000 per year by US resident, from a single foreign person ? Can 2 or more foreign persons send $100,000 each to a single US resident ( in which case the US resident gets ~$200k from 2 foreign nationals from abroad ) ?

Also, what is the $15,000 limit about ? Is it for receiving or giving gifts by US resident? How is it different from $100,000 limit ?  

[dr_fadi79]

Thank you for your explanation. is there a limit overtime for the total gift or is it unlimited? lets say if the gift is $350K, can it be transferred one time and report to IRS that the whole amount is a gift?

[Herbert570]

Following the question, I need to return the gift fund my parent sent me from overseas (>$100,000 and but is around that value) for some reason, do I have to pay gift tax because I send it back without asking for any obligation? I’m a permanent resident of US while my parents are Taiwanese citizen without any affiliation to the US. 

If later they send the money to me again through two wire transfers (each around $50,000)  for the Taiwanese gift tax exemption purpose, would that be ok with IRS and should I file a total of three 3520 forms for the first and the latter two transfers?

hi @SusanY1, could you help me answering the questions above?

[gemorenok]

Hi SusanY1,

What if I am getting my retirement funds (~$120K) wire to the US (from a foreign financial institution to my US bank account), do I need to pay taxes and file any IRS form?

[DaveF1006]

Yes, if this is a retirement distribution to your personal bank account, this must be reported as taxable income. 

[KRM_444]

Hello all,

I have a quick question:

Suppose a parent in Kenya, Africa is going to send their child in America $500k-1M. The parent is not a US citizen, but the child is a US citizen. What are the tax implications for both parties? Should the parent send it as a “gift” or not, and why?

• I did some googling and it said that is you are a US citizen and you are receiving $$ from a parent who is NOT a  US citizen, then you do not have to pay taxes. However you will need to file a 3520.
• I couldn’t find any information about being a resident in Kenya, Africa from PWC (informations unavailable)..

[DoninGA]

---

@KRM_444 wrote:

Hello all,

I have a quick question:

Suppose a parent in Kenya, Africa is going to send their child in America $500k-1M. The parent is not a US citizen, but the child is a US citizen. What are the tax implications for both parties? Should the parent send it as a “gift” or not, and why?

• I did some googling and it said that is you are a US citizen and you are receiving $$ from a parent who is NOT a  US citizen, then you do not have to pay taxes. However you will need to file a 3520.
• I couldn’t find any information about being a resident in Kenya, Africa from PWC (informations unavailable)..

---

Since your parent is not a US citizen or US resident alien and not living in the US they have no obligation to report the gift to the IRS.

As the recipient of the gift you do Not report the gift on a US tax return, regardless of the amount received.  However, since the gift is from a foreign person you must report the gift received to the IRS using Form 3520 if the gift received is more than $100,000.

[KRM_444]

Thank you very much for the quick turn around!

[BoldPilot]

What about the state tax? Does Massachusetts require any tax payments for the gifts fund less than $100,000  received overseas from non US or resident parents living abroad?

Thank you.

[AUE1]

Hello

It should be ok with $100.000 as this amount is not exceeding $100.000.

In the IRS website it says:

"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. "