Wire transfer to my sister in foreign country

[Japtrupusz]

I'm leaving U.S for good, after couple of years and need to sort out my money. If I wire transfer my money to my sister bank account in my coutry, how can I avoid paying taxes since I have already paid all the tax. (The money was income from working) Any form I need to fill out? Unless there's different way to take my money to my coutry? I don't have a foreign bank account, and don't want IRS to think this is a gift since I'm transferring it to my sister? Thank you

[ErnieS0]

Transferring money to your sister is probably a gift, so it’s not taxable. 

If you made a gift of more than $17,000 to your sister in 2023 then you would file a Form 709 in 2023 to reduce your lifetime exclusion amount which in 2023 is $12.92 million dollars.

You would not pay any tax. Your lifetime exclusion from estate and gift tax simply goes down. If you are leaving the U.S. permanently, you would not need the exclusion.

Learn more about the gift tax at The Gift Tax Made Simple.

[Japtrupusz]

I have read that:

" You do need to pay tax on wire transfers sent to a foreign bank account, if the transfer exceeds a certain sum. Any amount over $16,000 sent to a foreign bank account is likely to be considered as a taxable gift by the IRS. However, this may not apply if you’re sending to an overseas account in your own name.

Do you know why the wire transfer money webpage says that I would need to pay tax? As I said that wouldn't be a gift to my sister as when I come back to my coutry I will open my own bank account and transfer money to myself. 

[DaveF1006]

It really doesn't matter what you eventually do with the money. If you send money overseas to any account other than your own, it is considered a gift, no exceptions.

[Japtrupusz]

So if it is over 17k do I need to pay tax even if I'm simply taking my money to my country?

[MayaD]

No. you won’t owe the tax until you’ve given away more than $12.06 million in cash or other assets during your lifetime.

• The lifetime exclusion was raised to $12.06 million in 2022.
• If you’re married, your spouse is entitled to a separate $12.06 million in 2022.

As ErnieS0 mentioned, since the amount is above the annual $16000 exclusion for 2022, you may still have to file gift tax return form 709 even though you don’t owe any tax. (After 2022, the $16,000 exclusion may be increased for inflation.)