My parents are in Asia. I am in NJ. They want to wire-transfer me $ 20K to my bank as a gift. Since they are not in the US, I don’t think the US tax rule will apply to them. In that case, will I have to pay for the gift tax? And do I have to report that I get this $ 20K gift?
Answer by Dr. Deth
giver pays the gift tax, not the receiver
Answer by rob b
They gift tax falls on them, if they file, but.. they can split the gift (10k from mom and 10k from dad) and the $ 12,000 exemption is not met,,, there fore, no tax for anyone.
Answer by v b
Unless your parents are US citizens or US resident aliens, the US gift tax law does not apply to them.
Since you are receiving money from outside the US, look at IRS form 3520. From a trust, the filing requirement is very low (around $ 12-13,000); from individuals, the filing requirement kicks in at $ 100,000 in one year.