Question by KGB: Do I have to pay tax on money transferred overseas? Ok, so my parents and relatives live overseas in Asia and I am here in U.S. fo...
Question by KGB: Do I have to pay tax on money transferred overseas?
Ok, so my parents and relatives live overseas in Asia and I am here in U.S. for school. I live with my brother and sister and am a U.S. citizen, but my parents/relatives are not. They run a family company in China and Taiwan and rarely travel to the States. They told me they will send my siblings and I 0k for 4-year tuitions and other expenses. Would I have to pay tax on this money? Also, they were thinking about buying a house in America and was asking us how the process would work if they sent us money to buy a house for them. What is the process? Would my siblings and I have to pay taxes on that money as well for them? Finally, when upon receiving this money overseas, how would we go about claiming it? What type of Tax Form do we have to fill out if needed?? Thanks!
*Note: This is not inheritance just money sent from overseas…
Answer by Jss
The receiver of gift does not pay any tax in the U.S. So if you or your siblings are getting gift money from overseas you do not pay any tax. If the gift amount exceeds 0K, then you file Form 3520, which is for reporting purpose only.