Bank Transfers between spouses (both non-US citizens) - Gift Tax applicable?

Forum|Forum|10 months ago
May 13, 2025
2 replies
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When we were closing a home, my bank agent had to transfer (260 K) from my wife's bank account to my bank account and then send the combined amount as a single wire transfer to my escrow.

My question, both myself and my wife are not US citizens but are on work visas and US residents (pass the substantial presence test).We file the taxes jointly.

Can someone please let me know if we would incur any tax on the bank transfer from my wife's account to my bank account?

TurboTax Basic Online

DoninGA

Employee

Funds transferred between spouses is not reported on a tax return.

question_tax2025Author

Thanks.Are there any exclusions for non-US citizens?

I found few threads mentioning if they are non-US citizens,they have a maximum of $190,000 after which they incur taxes . Is that true?

Source link : https://www.morganlewis.com/pubs/2024/10/irs-announces-increased-gift-and-estate-tax-exemption-amounts-for-2025#:~:text=Each%20year%2C%20the%20IRS%20sets,avoids%20gift%20and%20estate%20taxes.

question_tax2025Author

I also found this on IRS website.Kindly clarify

https://www.irs.gov/businesses/small-businesses-self-employed/freque[product key removed]ions-on-gift-taxes-for-nonresidents-not-citizens-of-the-united-states

guywong

Since both of you are in the U.S. working, do you and your wife qualify as U.S. residents for income tax purposes due to physical presence? And if the house is under both names, you and your wife, there may not be any "gift" involved. The transfer may just be for banking convenience purpose only.

Take a look at this IRS link:

Substantial presence test | Internal Revenue Service

question_tax2025Author

Thanks.

Yes, we qualify as U.S. residents due to physical presence and yes, the house is under both our names.

Mike9241

Gifts to your spouse. You must file a gift tax return if you made
any gift to your spouse of a terminable interest that does not
meet the exception described in Life estate with power of
appointment, later, or if your spouse is not a U.S. citizen and the
total gifts you made to your spouse during the year exceed
$185,000.
You must also file a gift tax return to make the qualified
terminable interest property (QTIP) election described under
Line 12. Election Out of QTIP Treatment of Annuities, later.
Except as described earlier, you do not have to file a gift tax
return to report gifts to your spouse regardless of the amount of
these gifts and regardless of whether the gifts are present or
future interests