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Hi and welcome to Just Answer!If you are living in the US - you are considered a resident alien - and you are taxed on all your worldwide income.However - the gift you receive from your father is not taxable income. Gifts are not taxable for recipients. You would need to report the fact of receiving the gift from a nonresident alien - but only if the total gift value is above $100,000. Since your gift is less than this threshold - there is no thing taxable and nothing to report to the IRS.
If you are filing a joint tax return with your spouse - you might be able to claim a credit for educational expenses. You will find more details in this publication - www.irs.gov/pub/irs-pdf/p970.pdf
Thanks for the quick response . I read somewhere that only US citezens comes under "Gift" rule (not taxable) and all visa/immigrants not considered for "Gift" (not taxable). Is this true?
It doesn't matter how the money are transferred - if that is a gift - there is no tax liability and nothing to worry - the best and safest way will likely be to use bank-to-bank transfer if that is allowed in India. If you will carry the money over the border - the amount of $10,000 or above should be declared to customs.
So you are saying that for H4 visa holders gifts are not taxable. right?
Yes - as a recipient of a gift - you do not need to claim it as income. Regardless of the value of the gift. Please see for reference IRS publication 525 page 31 left column - http://www.irs.gov/pub/irs-pdf/p525.pdfGifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income.
Gifts are NOT taxable income in the US. Regardless of you visa status.
You are welcome. I provided a reference that the gift is not taxable - see IRS publication 525 page 31 left column.