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xjing-w
New Member

Transfer 50K from U.S. to another country as a gift, do I need to file any tax forms?

I am not a US citizen and don’t hold a green card. I have lived in the U.S for 7 years and am now holding an H1B visa. If I need to transfer $50K from the U.S. to a foreign country (as a Gift), do I need to file any tax forms?

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Accepted Solutions
LinaJ2018
Intuit Alumni

Transfer 50K from U.S. to another country as a gift, do I need to file any tax forms?

Since you have lived in the US for seven years, you are considered as a US resident for tax purposes. For reporting purposes, you will need to file a Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return. However, you do not need to pay any gift taxes for the year 2017.

Per IRS, as a donor who delivers the gift, you do not report any gift taxes unless it exceeds $14,000 ( For the year of 2017) per person. As TurboTax does not support Form 709, you can download it from the IRS website and fill it out per the Form 709 instructions.

 

PLEASE NOTE THAT you will not owe any taxes unless your lifetime gifts exceed the maximum exclusion of $5.4 million. However, you have to file a Form 709 every year when the total gift amount you give out exceeds the annual exclusion amount so that they can be counted and calculated against your lifetime exclusion

 

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6 Replies
LinaJ2018
Intuit Alumni

Transfer 50K from U.S. to another country as a gift, do I need to file any tax forms?

Since you have lived in the US for seven years, you are considered as a US resident for tax purposes. For reporting purposes, you will need to file a Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return. However, you do not need to pay any gift taxes for the year 2017.

Per IRS, as a donor who delivers the gift, you do not report any gift taxes unless it exceeds $14,000 ( For the year of 2017) per person. As TurboTax does not support Form 709, you can download it from the IRS website and fill it out per the Form 709 instructions.

 

PLEASE NOTE THAT you will not owe any taxes unless your lifetime gifts exceed the maximum exclusion of $5.4 million. However, you have to file a Form 709 every year when the total gift amount you give out exceeds the annual exclusion amount so that they can be counted and calculated against your lifetime exclusion

 

xjing-w
New Member

Transfer 50K from U.S. to another country as a gift, do I need to file any tax forms?

Thank you very much! A follow up question, what if I (my US bank account) receive a $50K internatinal wire transfer from a foreign bank as a gift, do I need to file any tax return? Thanks!
xjing-w
New Member

Transfer 50K from U.S. to another country as a gift, do I need to file any tax forms?

Thank you! Just wanted to confirm, if the person who receives the $50K wire transfer is not a US resident, Do I still need to file a tax return (e.g. form 709)? Thanks!
LinaJ2018
Intuit Alumni

Transfer 50K from U.S. to another country as a gift, do I need to file any tax forms?

Please see answer below.
LinaJ2018
Intuit Alumni

Transfer 50K from U.S. to another country as a gift, do I need to file any tax forms?

As a US resident for tax purposes, if you receive a foreign gift, you may need to report a Form 3520 if meets certain requirements. 

Please see link https://www.irs.gov/businesses/gifts-from-foreign-person

Transfer 50K from U.S. to another country as a gift, do I need to file any tax forms?

What is the correct action if the funds were gifted by resident alien in a mid-year and then I terminated my tax residency status (left the country), so by Jan of following year I am not a resident anymore

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