How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask CGCPA Your Own Question

CGCPA
CGCPA, CPA
Category: Tax
Satisfied Customers: 3742
Experience:  over 40 years experience in tax matters
50756543
Type Your Tax Question Here...
CGCPA is online now
A new question is answered every 9 seconds

Money gifts from abroad. I reside in the USA, and my parents

Resolved Question:

Money gifts from abroad.
I reside in the USA, and my parents (non-US citizens living abroad) want to wire me a substantial amount of money as a gift. It is their own money, and they paid taxes on it in theor country. However, I am concerned I will be taxed for it when I receive it.
Are money gifts from abroad to be reported in the tax return? What is the maximum amount of money that a us citizen can receive from abroad without incurring into a tax?
What is the IRS regulation on how to handle money gifts from abroad?
Submitted: 4 years ago.
Category: Tax
Expert:  CGCPA replied 4 years ago.

Good morning,

 

Gifts, regardless of where they are from, are not taxable to the recipient. They may be taxable to the giver depending on where the giver resides. Since your parents live outside the US they should check the gift tax rules where they live. If they lived here in the US they could each give you up to $13,000 per year (total $26,000) without needing to file a gift tax return. The filing of a gift tax return in the US does not mean there is a tax to pay, just that the need to file a return has been triggered. It may be important to your parents to check local tax rules to see where they stand in their country. You, on the other hand have no issue here. I would suggest they send the funds in the form of a check or money order for safety and to permit record keeping on both sides of the transaction in case it is ever questioned.

Customer: replied 4 years ago.

Hello,

I am not sure I understood. Do I have to report this gift to the IRS or not? Is there an amount limit? What is the maximum amount of money that a us citizen can receive from abroad without incurring into a tax?

thanks

Expert:  CGCPA replied 4 years ago.
There are two sides to a gift.You are the recipient and do not have anything to report to the IRS. Your parents are the givers (donors) and MAY need to report this in their country.
Customer: replied 4 years ago.
<p>Thank you but, I asked twice and whether there is amount limit, and what is the maximum amount of money that a us citizen can receive from abroad without reporting the gift to the IRS. Could you please point me to the IRS regulation about this?</p><p>Thank you</p>
Expert:  CGCPA replied 4 years ago.
There is no limit as to how much you can receive since the receiver of a gift is not taxed on the gift.There is also no reporting requirement imposed on the receiver of the gift.
Expert:  CGCPA replied 4 years ago.
IRS Publication 950 is the reference source for the information I have provided. You can access the Publication at the IRS official website www.irs.gov You may wish to print a copy for your future reference.
Customer: replied 4 years ago.

There is no reporting requirement imposed on the receiver of a gift?

How about form 3520?

Expert:  CGCPA replied 4 years ago.
Form 3520 is required only IF the amount of gift you receive is $100,000.00 or more. It does not impose a tax on the receiver of the gift. If the gift is going to be in excess of that threshhold you may want to chose to receive some this year (less than $100,000) and additional funds next year (again less than $100,000). The only area of concern involved here is the reason the form exists in the first place - tracking money used by criminals and terrorists. It is, if it applies to you, just a reporting of a transaction between family members.Filling out the form, if you need it, is simple in itself. However, if you require assistance I will be happy to assist you in this.
CGCPA, CPA
Category: Tax
Satisfied Customers: 3742
Experience: over 40 years experience in tax matters
CGCPA and 7 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
CGCPA
CGCPA
Tax Professional
3742 Satisfied Customers
over 40 years experience in tax matters