Is money brought into the US taxed?

[lostinblue 1,989]

I would say NO on the tax issue.Many people come here and bring money. Pick up the phone and talk to a CPA if you are worried. There certainly is no money laundering involved.WOW. My wife just brought cash with her when she came. Other times we used Bank of America to do a transfer as they have branches in china. Talk to someone at the bank and they will set you straight. (one that does international banking)

[Harpa Timsah 13,258]

Yes, and I have no brain...that's why I am suggesting that a person that wants to wire money from an account in a foreign country to an account in the US should have professional advice. And you are exactly correct...THE BANKS WILL NOTIFY THE FEDERAL AUTHORITIES IF NEED BE. That is the exact reason I would suggest one have professional advice. I don't care if they do it...I am just trying to help them, using caution.

And yes you don't go to prison for having money...I never said that. But ignorance of the law is no exception...

You are being alarmist and typing in all caps doesn't help your case. Justify your freak out all you want.

[David & Diana R 1,005]

Ok, let's calm down. Obviously if we were talking about obscene amounts of money I would consult with a tax advisor first. It's not an alarming amount, I asked on VJ because finding a way to transfer savings to the US without carrying it on your person on the plane is something that almost every person immigrating to this country has to navigate.

I appreciate your concern about me consulting with my accountant. I will do that, however I would also like to what other VJ members have done in order to transfer their savings to their accounts in the US.

What other people have DONE and GOTTEN AWAY WITH does not mean it's okay. You do what you want. 10k is a magic number but then again the IRS also monitors amounts close to that, or multiple transfers from one account to another below the 10k threshold.

Good by and good luck

Aloha Ke Akua

[aamirpearl 47]

Is money that is wired from a foreign country to the US taxable income? My fiance wants to wire me money (a small amount, less than 10,000) before he travels to my bank account. After he is here and has set up his own account he will wire the rest of his savings. Do we have to pay taxes on this money or declare it in any way if its being wired? Does it make a difference that the first transaction would be going from his bank account to mine, vs the second where it would be going from one of his own accounts to another?

Thanks!

have you spoken with your US bank to determine if it will accept $10K in foreign currency and, if so, what fees it will charge? All of this may be for naught. Some banks (branches) will not accept physical foreign cash or may accept it as your agent, pending on it processing (which can take a long time). This is both because the bank has no facility for doing anything with the currency other than shipping it and it has no capacity to determine whether the currency is forged.

Edited September 10, 2013 by @@mirpeArL

[Adrian-Danielle 12]

I sent money to my fiancé all the time while I was back home..its all perfectly legal! Then when I moved to the US, once I set up my bank account I transferred all my savings. If you are sending large sums, dont go through banks, I suggest going through an online foreign exchange company. i used forex. They offer much better rates....good luck

[aamirpearl 47]

It's risky to travel with cash, we don't want to risk him getting robbed in the airport..

No who wud knw he's carrying $10K?nd airport is safe dont worry, he has to carry it with him in his backpack nd use the locker

[jenni17 36]

have you spoken with your US bank to determine if it will accept $10K in foreign currency and, if so, what fees it will charge? All of this may be for naught. Some banks (branches) will not accept physical foreign cash or may accept it as your agent, pending on it processing (which can take a long time). This is both because the bank has no facility for doing anything with the currency other than shipping it and it has no capacity to determine whether the currency is forged.

I have, the bank said that there would be no problem for him to transfer from his account there to the account here and they've given me all the info he needs to give to his bank in order to do the transfer. Since the amount he is wiring is small the fees are minimal, $15 charge by my bank here and a $30 dollar charge by the bank in Peru. It's common to keep savings accounts in dollars in Peru since the country has a history of unstable currency, so the accepting a foreign cash is a non-issue since his savings is already in dollars.

Thanks to those of you for your helpful comments!

[lostinblue 1,989]

Wife changed RMB to Dollars in china then wired it the money from Bank of America China to Bank of America. so simple.

[aamirpearl 47]

I have, the bank said that there would be no problem for him to transfer from his account there to the account here and they've given me all the info he needs to give to his bank in order to do the transfer. Since the amount he is wiring is small the fees are minimal, $15 charge by my bank here and a $30 dollar charge by the bank in Peru. It's common to keep savings accounts in dollars in Peru since the country has a history of unstable currency, so the accepting a foreign cash is a non-issue since his savings is already in dollars.

Thanks to those of you for your helpful comments!

he can transfer money through Western union to your US bank acocunt http://onlinefx.westernunion.com/

[Cathi 5,624]

What other people have DONE and GOTTEN AWAY WITH does not mean it's okay. You do what you want. 10k is a magic number but then again the IRS also monitors amounts close to that, or multiple transfers from one account to another below the 10k threshold.

Good by and good luck

Aloha Ke Akua

Why are you freaking out, seriously? There is NOTHING illegal or wrong with bringing money here from another country or with wiring from a foreign back to a US bank account as long as any amount over 10k is declared. You sound like you are accusing the OP of being a criminal. How do you think people who move here get there money here? Seriously you need to take a chill pill.

[Ning 619]

Yes, you can wire money to a US account. The US bank will automatically report the wire and the account if required.

Am I a tax advisor? No, I just have a brain.

And you don't go to prison for having money. A lot of HWFO-ery. Yes, I said it! lol

This is absolutely 100% correct. My husband did exactly this many times with no problems. He also carried 50 K in cash into the USA by simply declaring it. No one asked one question after they looked at the document.

[Ning 619]

You are being alarmist and typing in all caps doesn't help your case. Justify your freak out all you want.

I agree but I think its the last sentence that indicates the problem. Ignorance of the law.

[scienceworks 64]

There is nothing wrong in wiring money from foreign as long as you can prove the origin. If you are married, then there is no gift tax to a decent high amount. My wife recently wired me money via BofA. If it is above 10,000, or decently high, then the bank will automatically inform IRS or the necessary federal authority. In the US side, keep the statement from the bank for the month when the transaction occurred. BofA will show the name of the person who sent it and the bank where it originated. I am assuming other banks will also do this. If possible keep the receipt from origin too. If you have a marriage certificate ( I am sure you have since you filed for i-130) then the spouse's name can be matched on the bank statement. That way any concern can be addressed without trouble.

My wife had sent me money twice, one recently and one 2 years before. I never went to jail.

If it is above 5000 or so, it is better to avoid carrying by hand. Nothing illegal. But declare in US side if it is above 10,000. Also look at the law in your country of origin. The limit might be low. eg, for India the declaring limit is 5000 USD in cash. If you carry cash, I suggest you carry the bank statement/atm/counter receipt to prove that the money is from your bank account. I have carried 3000-4000 USD from US to India and I withdraw from the bank counter and carry the receipt with me when I fly. Same even if I am driving.

Laws are not to scare people as long as you obey them properly.

Edited September 10, 2013 by scienceworks

[JasMi 1]

I wired quite an amount of Euros (converted to US Dollar), which were my savings, to my husband's account in the US. There was absolutely no problem with anything. Other than a transfer, I don't see how else one could safely bring their savings into the US.

[dxreed 4]

Is money that is wired from a foreign country to the US taxable income? My fiance wants to wire me money (a small amount, less than 10,000) before he travels to my bank account. After he is here and has set up his own account he will wire the rest of his savings. Do we have to pay taxes on this money or declare it in any way if its being wired? Does it make a difference that the first transaction would be going from his bank account to mine, vs the second where it would be going from one of his own accounts to another?

There are a lot more issues involved than you probably realize, but let's try to keep this simple. There's no need to make it complex at this point, because your questions actually have easy answers.

If your fiance wires money to you, there is no harm, no foul. It's his money and he can do with it what he wants. If the amount is more than $10,000 or if the circumstances seem suspicious to the Bank, they will notify the IRS of the transfer as required, but this is NO BIG DEAL. It happens all the time.

After your fiance is in the US, and transfers the rest of his savings, it's the same result. If the amount exceeds the $10,000 threshold or otherwise appears suspicious, the Bank will notify the IRS. Again, NO BIG DEAL.

It makes no difference that he transferred some to one account, and the rest to another account. It's his money to do with as he wishes.

Now, here's where it gets a bit tricky. Let's assume you marry before the end of 2013. That means you can file jointly for your 2013 US income tax return, if you wish to do so. But, depending on how much money/wealth your fiance has outside of the US, or transfers to the US, you may not want to file jointly the first year. It is way beyond the scope of what I can discuss here on this forum, and there's no way I can cover all the potential variables.

At tax return time is when you will need to determine what should be reported and how it should be treated for US income tax purposes. But in general, money that he earned before moving to the US is not taxable by the US. My recommendation when you get to this point is to seek a competent tax advisor (Attorney, CPA or Enrolled Agent) for help in preparing your tax return that covers the first year of being married. Subsequent years should be quite simple.

In lieu of talking to a tax advisor, you may want to review IRS publications yourself for some guidance. Start with IRS Publication 519 (the link is the 2012 edition, but it has a lot of good information).

There's an individual who keeps posting about the $10,000 threshold. While it does exist, you have nothing to worry about as long as your fiance earned his money through legal means. Don't stress out over this because it's just standard operating procedure for the banks. This is only ever an issue if money is obtained through illegal activity which I am happy to assume you and your fiance have no involvement with.

While I cannot provide specific tax advice to you in a forum such as this, nor can I disclose my employer, let me just say this: I have been a tax advisor for the past 23 years, working for one of the 4 largest international accounting firms. And, my fiancee just arrived here on a K-1 visa yesterday, so I'm dealing with exactly the same issues you are asking about.