Transfer money from my foreign bank account to US bank account

[BeartOvi]

Thanks @SusanY1 

From your answer, I understand that:
- I don't need to file a bsaefiling, as the account was never more than 10k. 

- I don't need to report the transfer from that foreign account to my US account (even if the sender was under a different name, not mine), as technically, this was my account and still under 10k.

- That money wouldn't be taxable.

Is this accurate?

Regards!

Oliver 

[KarenJ2]

Yes, you are correct.  

- You don't need to file a bsaefiling, as the account was never more than 10k. 

- You don't need to report the transfer from that foreign account to my US account (even if the sender was under a different name, not mine), as technically, this was your account and still under 10k.

- That money wouldn't be taxable.

There is another foreign reporting requirement for Form 8938 that you need to file is you meet the filing requirements.  It includes foreign pension accounts, foreign mutual accounts, foreign stocks held in foreign financial institution, etc.

Please see the below link for a comparison of the requirements of Form 8938 to the FBAR.

Comparison of Form 8938 and FBAR Requirements

[SusanY1]

Hi, Oliver, yes, you understand that perfectly!

@BeartOvi 

[utku]

Hi all,

My case is a little bit different. I am planning to transfer my own 20K $ from my foreign account to here in my US bank account.  I know i will NOT have to include this to my tax file as it is my own savings. But because it exceeds 10K $, do i need to take any action on this? 

Other thing is, because i was considered non-residence tax payer for 2019 in US (working less than 183 days in a calendar year), i was told by my tax consultant company that i do not need to report my Foreign account for this year even though it exceeds 10K $. So, if i transfer that money after tax payment/refund for this year, IRS would give me any penalty for not reporting this account and transferring that money to here? Or i can just transfer my own saving without worrying about nothing?

Thank you in advance.

Be safe!

[KarenJ2]

There is no issue with transferring your own money to the US.  Just make sure you report it if you are considered a resident.

Whether you are a US resident is not based on working less than 183 days.  It depends on the Substantial Presence Test and 183 days of presence in 2019, 2018 , 2017 using the following formula.

You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least: 

1. 31 days during the current year (2019), and 

2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:  

• All the days you were present in the current year (2019), and 

• 1/3 of the days you were present in the first year before the current year (2018), and 

• 1/6 of the days you were present in the second year before the current year (2017). 

Using this formula you determine whether you should file a resident or nonresident tax return.

Nonresidents do not need to file the FBAR or Form 8938.

If you are a US resident for any part of 2019 using the substantial presence test, you will need to report the FBAR and/or Form 8938 for the part of the year you were a resident.

There is no issue with transferring your own money to the US.  Just make sure you report it if you are considered a resident.

[BeartOvi]

Where do you declare this on your tax return? What specific item? I don't see an option for non-taxable money. Thanks.

[KarenJ2]

The US Treasury Department wants to know if you have any foreign banks or foreign assets.  The reports are not for taxing but only for Information Reporting Purposes.

FBAR:  The Report of Foreign Bank and Financial Accounts is due APRIL 15, 2020.  It has NOT been extended to July 15, 2020.

United States persons are required to file an FBAR if: 

1. the United States person 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. 

United States person includes U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States. 

If this applies to you you need to go to the following website before April 15th:  FBAR Filing  You cannot file this with your tax return.  It can only be entered online.

You need to go to the following section in TurboTax:  

In the search bar at the top of your page enter foreign accounts and you will see foreign accounts and trusts, questions on schedule b as an option in the drop down.  The must be entered exactly as written (with the comma after trusts, )Choose this and then click on Jump to foreign accounts, etc.   Answer the questions concerning your foreign accounts.  

TurboTax will let you know if you have a filing requirement for Form 8938, Form 8938 is included with TurboTax.

[utku]

Thanks Karen, EY is filing my 2019 tax return as non-residence so i was advised that i do not need to file FBAR for this year. However even thought i had transfered my own money from a foreign country to US now and had 0 balance there, i think i would have to file FBAR for tax year of 2021 because my joint accounts would have had more than 10K in any calendar year of 2020. (before i make the transfer) Is that correct?

[KarenJ2]

Perfect!  Yes if you are still in the US for 2020, if you pass the Substantial Presence Test, you will need to fie an FBAR by April 15, 2021.  Stay safe.

[BeartOvi]

An extra question regarding this... I'm looking at the transfer I was previously referring to. Even if it's my money, the transfer was made from an external bank account (not in my name, but in the name of the institution that was managing my account). It basically states the name of the originator bank + the name of the institution. What I mean is, that my name doesn't appear on the transfer as originator, only as the recipient : 

The amount is less than $10,000, but given the characteristics of the transfer, do I need to declare this as income? 

Or as I don't appear as the originator of the transfer, can this be taken as income by the IRS?

Please advise. thanks!

[MaryK4]

It depends on why you received it- if it was a gift or bequest you would not report as income.  The $10,000 reporting requirement is separate so if you are under that threshold you do not need to report.  

@BeartOvi

[BeartOvi]

It's from the closure of a retirement account, from a country I lived 10 years ago (stopped contributing to this account in 2011 or 2012, but the account was left there, administered by a third party and earning interest). 

How should I proceed?

[KarenJ2]

If you received a retirement distribution you will need to report this as income.  If you are a US citizen or US resident, you need to report your worldwide income, no matter where you earned or received it.  If you paid foreign tax on this income, you can claim a foreign tax credit to help offset double taxation.

[fountopa]

Hi all,

So, for confirmation/clarification purposes:

1. I immigrated from GR to US on Nov 2018 (E1)

2. I filed my 2018 (as non-resident) and 2019 (as resident) tax returns

3. During June 2020, I transferred more than $ 10k from my own bank account in GR to my own bank account in US. 

What I have to do ?

1. Should I file FBAR for 2019 or for 2020 (next year)?

2. Should I have reported these overseas money in my 2019 tax return?

3. Bank reported the money transfer. Should I report (the transfer) as well? Which form (3520 or other)?

Thank you in advance for any help provided.

Best regards

PF

[DoninGA]

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@fountopa wrote:

Hi all,

So, for confirmation/clarification purposes:

1. I immigrated from GR to US on Nov 2018 (E1)

2. I filed my 2018 (as non-resident) and 2019 (as resident) tax returns

3. During June 2020, I transferred more than $ 10k from my own bank account in GR to my own bank account in US. 

What I have to do ?

1. Should I file FBAR for 2019 or for 2020 (next year)?

2. Should I have reported these overseas money in my 2019 tax return?

3. Bank reported the money transfer. Should I report (the transfer) as well? Which form (3520 or other)?

Thank you in advance for any help provided.

Best regards

PF

---

You would file a FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) for tax year 2019 and 2020 since you had at least $10,000 in a foreign accounts - https://bsaefiling.fincen.treas.gov/main.html

See this IRS website for FBAR information - https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-a...

See this IRS website for a Comparison of Form 8938 and FBAR Requirements - https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

You do not report the transfer of the funds from one personal account to another personal account on your tax return.  

You do not use a Form 3520 for this transfer since it is not a gift from a foreign individual or from a foreign trust.

IRS Form 3520 - https://www.irs.gov/forms-pubs/about-form-3520

Your only requirement is to report the foreign accounts using FinCEN Form 114