Cash gift to kids in my family

[Gemani]

When sending money to my parents abroad via Western Union, should I label it as a GIFT or family support/living expenses as purpose of transfer? I'm unsure because I'm contributing to building their house, and the amounts are larger than usual. Also, if I've sent $17,420 annual remittance and label it as Family support/living expenses in the purpose of transfer. Money was  sent every month or weeks based on the needs of the construction, do I need to report it? I am a US citizen and the source of sending the money is not from loan.

[xmasbaby0]

We answer income tax questions here.  You are really not asking a tax question.    We do not know if there is any legal significance to how you respond to the questionnaire from Western Union.

Gifts given to family members, friends or other individuals are not deductible.   Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($17,000 per individual)  imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.    In 2024 that yearly limit will increase to $18,000.

TurboTax does not support Form 709.  It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N