Sending wire overseas for family

[nice1231]

I am an US resident and I was wondering if I send $100,000 to my sister in Canada who is not an US citizen nor resident, do I need to report it to the IRS?

[DoninGA · Accepted solution]

If you are gifting her the $100,000 then you need to report the gift to the IRS using Form 709

TurboTax does not support Form 709

Go to this IRS website for the Form 709 which includes in the instructions on where to mail the form - https://www.irs.gov/forms-pubs/about-form-709

Any gifts to an individual of over $18,000 have to be reported to the IRS.  However, there are no taxes on the gift until the total of all gifts given is more than $13.61 million

[Opus 17]

If you are a US person for tax purposes (citizen, green card holder, or resident alien) you must report gifts of more than $17,000 per person per year.  Gifts are not taxable unless your total lifetimes gifts are more than about $14 million, but large gifts must be reported to track against your limit.  This is done using form 709.  This is not included in Turbotax, and is filed separately from your tax return, but the deadline is the same (April 15, 2025 for gifts made in 2024). https://www.irs.gov/forms-pubs/about-form-709

No other notifications need to be made for the wire transfer.  The banks will automatically take care of any transaction reports that need to be filed for movements of large amounts of money. 

[nice1231]

Thank you for your response. To clarify, the wire won’t get taxed unless it exceeds the amount of $13 million.

Thank you again.

[DoninGA]

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@nice1231 wrote:

Thank you for your response. To clarify, the wire won’t get taxed unless it exceeds the amount of $13 million.

Thank you again.

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Correct.  If the total of all gifts ever given by you to individuals is less than $13,61 million, you will not be taxed on this gift.

[Opus 17]

To clarify, as long as your lifetime gifts is currently below $13M, this gift will never be taxed.  If you do eventually go over the limit, future gifts (and your estate) will be subject to gift and estate tax, but that is not retroactively applied to prior gifts before you crossed the limit.