Hello,
I am a non US citizen and non US resident. I have some savings in a US bank account and I want to move this overseas. I want to make payments to different persons and a company. Do I need to pay any tax on such transfers? And if so is there any form I need to complete? Or is there any ways to avoid to pay tax again?
Thanks,
Olivier
Bank to bank transfers are not reported on a federal tax return. The funds that are transferred are not taxable income.
Hey,
I am living in US. Do you mean we do not need to report to IRS no matter how much money is transferred to a overseas bank account on whatever purpose?
@jacksun210 wrote:
Hey,
I am living in US. Do you mean we do not need to report to IRS no matter how much money is transferred to a overseas bank account on whatever purpose?
No. Only that there is no income tax and no tax reporting if you transfer your own funds to yourself. If you transfer more than $10,000, even to yourself, the bank is required to report it, although you do not report it.
If you are a US resident alien or US citizen or permanent resident and you own a foreign bank account with more than $10,000 US in it, you must report that on an FBAR form, not a tax return.
There are many other situation where you might transfer money to someone else, that have tax and reporting requirements. For example, if you pay someone else to perform a service (an employee or subcontractor) you may be required to file a report and withhold income tax from that payment. If you are a US person and make a gift of more than $15,000, you must report it even though gift tax is usually not owed.