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
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.
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.