Question

Transfer of money to non-US citizen

Forum|Forum|4 years ago
November 22, 2021
1 reply
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Hi,

I'm a green card holder, and my mom is a non US citizen nor resident, and living outside of the US. I have a bank account in my native country, and wired amount equivalent to just over $20,000, from my bank account to hers, both are outside of the US. Do I report this wire transfer to the IRS as gift, even though my mom has no relations to the US?

Thank you.

Not A Product Question

P

pk12_2

Employee

@HS1402

1. As a US person ( citizen, Green Card holder or Resident for tax purposes) the tax laws are the same and you are generally allowed to give a gift of "free amount" per year per donee without having to report . For 2021 the "free amount " was $15,000 -- it is not material whether the monies came from US sources / US bank or is another currency -- since you are taxed on your world income. It also does not matter whether the recipient / donee is a US person or not .

2. If you are married then you and your spouse can each gift $15,000 to a donee without having to report.

3. Any amount above the free amount needs to be reported on form 709 , has no tax effect today but counts towards your life long amount when your estate is settled / inheritance. And this may change significantly by the time your estate settlement come up. So it is nothing to worry about today.

4. The fact that you have a foreign bank account , suggests that you perhaps you do need to file FBAR and FATCA forms. Hope you have been doing this .

Is there more I can do for you ?

H

HS1402Author

Thank you, this is very helpful. I only very recently moved to the US so still in the process of handling all the paperwork and settling my money issues from overseas.

Have a great day!