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I received an international wire transfer (from The Philippines)

in the amount of ~$9900...
I received an international wire transfer (from The Philippines) in the amount of ~$9900. It was a combination of a small inheritance (from my paternal grandmother) and a graduation gift. Do I need to pay taxes on this money?
Thank you!
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Answered in 5 minutes by:
9/2/2009
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
Hello bevjoy,

No, you do not owe any taxes on this money. There is no inheritance tax in the US and there is also no gift tax imposed on the recipient of a gift.

Since the amount you received was less than $100,000, then you are not even required to report receiving the money.

Keep in mind for future reference that if you ever receive money from a foreign source of more than $100,000 in any one year, you must report receipt of that money by filing Form 3520. No tax is due with the form, but it would be a reporting requirement on foreign transfers of more than $100,000 USD.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you bevjoy.

Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
Merlo and 87 other Tax Specialists are ready to help you
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Customer reply replied 8 years ago

Thank you, XXXXX XXXXX your prompt response! Just to clarify (I get paranoid when dealing with the IRS), there is nothing I need to file because:

1. the international incoming wire transfer was less than $100,000USD

2. it was a gift/inheritance

No forms? No filing?

 

Thank you again!

Hello again bevjoy,

That is correct. You have no forms to file at all, and no taxes will be due.

As I said earlier, if you should ever find yourself in a situation where you receive money from a foreign source that is more than $100,000 in any one year, then it needs to be reported on Form 3520. But for the circumstances you described, you have absolutely no reporting requirements at all.

If this was helpful please press the Accept button.

Thank you bevjoy and let me know if you have more questions.

Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
Merlo and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Merlo Your Own Question
Merlo
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
9,783 Satisfied Customers
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad

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