US resident alien transfer foreign wire to another us resident alien, do I need to pay tax?

[Anonymous]

Hey folks, I got some questions on taxes. Thanks for helping me.

My family member is on B1/B2 visa and she passed substantial presence test this year. Then, that means she becomes a us resident alien, right? If she foreign wire transfer me (us resident alien) money, does the money have to be lower than 17000 so that she doesn’t need to pay tax? Or, she could transfer any amount and no need to pay tax because it’s from a foreign bank account? She didn’t have any income earned in US and I gifted some (lower than 5000) to her. I believe I don’t need to pay tax for 5000 gift, right? She just need to file 1040NR for tax, right?

[Anonymous_]

@pk?

[SusanY1]

Transfers and gifts aren't considered income and are generally not reported by the recipient.  There is a reporting exception for gifts from foreign persons or trusts exceeding $100,000, but no tax is due.  This type of gift is reported on Form 3520.

Since your family member has passed the substantial presence test, she will file Form 1040 to report her worldwide income instead of 1040NR.  She likely does not need to file a tax return if she has no income (including no interest, dividends, or capital gains). 

She will not report anything related to gifts or transfers from her own foreign bank accounts on her Form 1040.