Money Given from Parent to Child

[PLMcG]

We have a savings account in a foreign country, The Netherlands. I have completed the FinCen FBAR form for 2021 tax year.
During 2021, my Dutch mother-in-law bequeathed approximately $7,685 (6,604 Euros) to her daughter, my wife. The money was deposited into our Dutch bank account. Is this money taxable and if yes, where do I report it in TurboTax (if I remember correctly, a parent can give up to $15K, per year, to each child without the child having to pay taxes on the money)? Any interest earned on the Dutch account is claimed/paid on our US tax forms. Thank you. Peter

[MinhT1 · Accepted solution]

As the recipient of the gift, your spouse does not report it on her tax return as it is not taxable, whatever the amount. The interest earned is taxable.

The $15,000 exclusion is for the gift donor.

We cannot comment on the donor's tax obligations in the Netherlands.