Transferring money to the US from Europe (merged)

[Sam M 0]

Hi,

I am about to relocate to the US. 
How did you guys transfer money from a European bank account to a US one?

Edited September 26, 2022 by Sam M

[Crazy Cat 39,212]

Bank wire....

[Aluvaboy 61]

11 minutes ago, Crazy Cat said:

Bank wire....

But you need to open an account in a US bank first! That cannot be done until the OP gets here! Lately the KYC (know your customer) requirements are strict! Once an account is opened, wire transfer is possible!

[Pe&Si 4]

Use Transferwise. They offer the best rates and its fairly easy. You usually get your money within days. I have used this service since 2014.

[P055UM 258]

2 minutes ago, Pe&Si said:

Use Transferwise. They offer the best rates and its fairly easy. You usually get your money within days. I have used this service since 2014.

Seconded. Wise (as they are now known) are excellent. 

[Crazy Cat 39,212]

1 hour ago, Aluvaboy said:

But you need to open an account in a US bank first! That cannot be done until the OP gets here! Lately the KYC (know your customer) requirements are strict! Once an account is opened, wire transfer is possible!

Not true.  My wife has wired large sums of money directly into my account BEFORE she arrived.  Bank wire is pretty easy and safe.

Edited September 26, 2022 by Crazy Cat

[Scandi 3,970]

I love Wise, use it a lot to transfer money to my foreign account when I go there for vacation. It works great both ways, btw. They generally have the best rates and lowest fees too. I always receive the money within 6 hours, so very speedy. 

Edited September 26, 2022 by Scandi

[Ontarkie 13,913]

~~Nine posts removed. Some for TOS Violation other's for quoting and derailing the thread.~~

[Chancy 6,233]

*** Moved from Moving to the US forum to Tax & Finances During US Immigration, where similar topics are discussed ***

 

[nekotakacho 60]

You can also use a crypto wallet, that’s how a lot of us are sending money to Russia these days 

Edited September 27, 2022 by nekotakacho

[laylalex 7,245]

Another vote for Wise -- we used it yesterday and money was in the UK person's account within minutes. On a Sunday! Fees were quite low too and the exchange rate was very good.

[Boatsi 7]

That's all good but I hope you know that apparently you're supposed to report sums over 10.000$ to the IRS? You are also supposed to report any foreign bank account or asset exceeding 10k$ within the tax year even if just for a single day in your tax report. I am not a tax expert by no means. I just did some research and want you to be aware of such things. If you fail to report you will have to pay a fine. As far as I know you don't have to pay taxes on the transfer but you need to report it. I'm meeting with a tax counselor soon to discuss this with him. I use wise or former transfer wise. 

Edited September 27, 2022 by Boatsi

[Wuozopo 4,285]

23 hours ago, Sam M said:

Hi,

I am about to relocate to the US. 
How did you guys transfer money from a European bank account to a US one?

I also use Wise (formerly Transferwise). Wise .com

 

 

6 hours ago, Boatsi said:

That's all good but I hope you know that apparently you're supposed to report sums over 10.000$ to the IRS?

The report is to the US Treasury. It is an informational report only, not an IRS taxable situation. The receiving bank is required by the Patriot Act to make the report of anything over $10k, so nothing for the individual to do in such a transfer to the US. 

[Wuozopo 4,285]

6 hours ago, Boatsi said:

You are also supposed to report any foreign bank account or asset exceeding 10k$ within the tax year even if just for a single day in your tax report. I am not a tax expert by no means.

A foreign bank account or multiple accounts totaling $10k require an online report made to the US Treasury or FinCEN. It is not on the tax return but is due at the same time. It is also known as FBAR.  
 

If the foreign accounts exceed $100k (for a married couple), there is a form on the tax return for reporting. Form 8938. The higher threshold report is also known as FATCA.

 

Here’s a good comparison of the two reports from the IRS. https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

Edited September 27, 2022 by Wuozopo

[Boatsi 7]

39 minutes ago, Wuozopo said:

 

If the foreign accounts exceed $100k (for a married couple), there is a form on the tax return for reporting. Form 8938. The higher threshold report is also known as FATCA.

 

Here’s a good comparison of the two reports from the IRS. https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

However I do recall from previous tax reports that I was asked if I at any time had foreign assets or money in a bank account exceeding 10k. So yeah you do have to give the IRS information about that