Filing requirements for foreign gift

Forum|Forum|1 year ago
April 17, 2024
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If I receive $70K gift from parents in a foreign country and my spouse receives $80K as well. Do we need to file Form 3520? If Yes, does this form need to be submitted with tax return or can be submitted before tax filing? (e.g. If money is received in April 2024, can we submit this form in June 2024)

Best answer by SusanY1

When the form is required, it can be filed sooner than your tax return, as the two are filed separately.

The threshold for the reporting is for each of you individually, so it does not sound like you have a filing requirement this year. Do be aware that it is the total of all gifts in the year, not a single gift, that triggers the requirement to file.

SusanY1Answer

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ImmigrantUserAuthor

hi Susan, thank you so much for your response!

We completed 8938 form as total amount crossed 100k limit.

Is there any harm in filing 3520 to declare the source of money in foreign accounts? Would this cause more confusion? TIA

SusanY1

There isn't any harm in filing the form when below the threshold and it isn't likely to cause any confusion. If you anticipate that you may received additional gifts before the end of the year, however, you may want to wait and file a single instance of the form in the new year.

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