Money transfer

[trinket 30]

I had a couple of fixed deposits back in India, I think the term for fixed deposit is Certificates out here in USA. Anyways they have matured and my dad decided to put that money in my bank account in India. The money is roughly around $12,000.

I do carry the atm card of that Indian bank account and I was hoping to withdraw the amount(little bit at a time, around $800 per day is the limit of withdrawing) and put it in my bank account here in US. Do I have to declare the money or pay taxes on it?

[mox 298]

I had a couple of fixed deposits back in India, I think the term for fixed deposit is Certificates out here in USA. Anyways they have matured and my dad decided to put that money in my bank account in India. The money is roughly around $12,000.

I do carry the atm card of that Indian bank account and I was hoping to withdraw the amount(little bit at a time, around $800 per day is the limit of withdrawing) and put it in my bank account here in US. Do I have to declare the money or pay taxes on it?

At $800 per withdrawal, you're going to be hit with 15 transfer fees, and they're not going to be cheap--check with your bank to find out what they are. You'll also be hit with whatever the banks decide the exchange rate between the Rupi and $US is each day, and it generally won't be in your favor. In most cases you're a lot better off doing a wire transfer to your US bank. See what the fees are with your bank in India for a wire transfer, it's likely going to save you a lot of money.

[trinket 30]

I did talk about bank wiring with my dad, but he won't be able to do it because to transfer that much of money one needs to have tax id number in India, which my dad doesn't and most probably he will never have. So I am stuck with withdrawing the limited amount a day.

But still the question is do I have to declare this amount to IRS?

Oh and per transfer fee is around $4 per transaction, I have did it earlier this September when my dad sent me some money for our own Hindu festive season

[mox 298]

Transferring large sums of money internationally (i.e. more than $10,000) should usually be reported as income. (and the IRS may or may not flag your ATM transfers) Depending on the source of the income, you may or may not be liable for taxes. For example, I believe if it's a "gift" (and you can prove as much) then the first $10,000 is tax free. But don't take my word on that. Your best bet is to get with a tax accountant to determine the best way to declare it.

[aidankari 0]

Transferring large sums of money internationally (i.e. more than $10,000) should usually be reported as income. (and the IRS may or may not flag your ATM transfers) Depending on the source of the income, you may or may not be liable for taxes. For example, I believe if it's a "gift" (and you can prove as much) then the first $10,000 is tax free. But don't take my word on that. Your best bet is to get with a tax accountant to determine the best way to declare it.

I plan on wiring about $25000 from Ireland to here in Jan. This money came from a redundancy I received in Ireland at the end of 2008. Any advice on if I have to pay tax and if so how to minimize it?

[Moksha 1]

Hi Trinket...

can I ask what kind of account are you using? My in-laws are in India and my husband and I have been trying to figure out an account that would let us either deposit money here in the States that my In-Law's could withdraw or have them deposit money there that we could withdraw. We haven't been able to figure out exactly what kind of account we need??? Any advice you could give would be appreciated because it sounds like you're kind of doing what we want to be able to do.

Thanks!

~Jen

[trinket 30]

Hi Trinket...

can I ask what kind of account are you using? My in-laws are in India and my husband and I have been trying to figure out an account that would let us either deposit money here in the States that my In-Law's could withdraw or have them deposit money there that we could withdraw. We haven't been able to figure out exactly what kind of account we need??? Any advice you could give would be appreciated because it sounds like you're kind of doing what we want to be able to do.

Thanks!

~Jen

Hi Moksha,

I have a checking account with Axis bank in India, before leaving I made it as a joint account with my dad, so he can access it any time. I kept the Visa international debit card they provide, so once in a while my dad deposit some money for gifts and things like that and I withdraw it from any atm here in US.

I am not really sure about sending money from US easily, I have sent some pocket money to my brother a couple of times and I have sent that through western union.

I would think you can do the same for your inlaws too, have a bank account in US and send them the international ATM card, so they can withdraw whenever they want to.

[FortLaudy 10]

I also have an investment account back in South Africa which I use to pay college fees and living expenses. My bank gave me a really good tip.. they advised me to transfer the money onto my credit card ( a credit card linked to the investment account). Here in the US I take that credit card to my Bank of America and they can - sometimes with or without the pin, usually just with your ID take a "cash advance" from the credit card - Free !

I don't know what your case is but I don't declare anything as I'm meant to be using my income from abroad to pay for school as per F1 visa regulations, I do send in some receipt or something from college at tax time saying how much I've spent here on college fees.

[FortLaudy 10]

Also, by taking it out of the credit card instead of the ATM there's really no limit, as long as you have the money transferred on that card... I remember buying my first car here cash and that was just under $15 000 or so using that method, transferring the cash directly to my bank of america account here and writing the car dealership a cheque.

[mox 298]

I plan on wiring about $25000 from Ireland to here in Jan. This money came from a redundancy I received in Ireland at the end of 2008. Any advice on if I have to pay tax and if so how to minimize it?

The very short answer is yes, legally you will have to declare this. The longer answer is whether you will have to pay taxes on it, and how much, depends on a lot of different things. The best thing to do is to hire a tax accountant, who can advise you on the best way to declare this, and which forms to fill out.

[leith@Ievgeniia 8]

banks will report 10,001 to irs for money movement. that is per day on a account. if you do 800 a day over the course of a month, you should be good. you pay taxes on income not on moeny you already have. so taxes you will report to gov't is on returns on investments on this money.

no i am not cpa but i am in business and have many tranactions a year that i deposit 10,000 into business account.

so good luck and i would suggest do it over course of 6 months or something like that

[leith@Ievgeniia 8]

Transferring large sums of money internationally (i.e. more than $10,000) should usually be reported as income. (and the IRS may or may not flag your ATM transfers) Depending on the source of the income, you may or may not be liable for taxes. For example, I believe if it's a "gift" (and you can prove as much) then the first $10,000 is tax free. But don't take my word on that. Your best bet is to get with a tax accountant to determine the best way to declare it.

I plan on wiring about $25000 from Ireland to here in Jan. This money came from a redundancy I received in Ireland at the end of 2008. Any advice on if I have to pay tax and if so how to minimize it?

on that type of money hire a CPA. find out what is needed to bring to usa or even if you wnat to bring all to the usa. it might be better with declining dollar to leave in pounds. if you need money to buy something or pay off your all your debt that is something totally differnt

[aidankari 0]

Transferring large sums of money internationally (i.e. more than $10,000) should usually be reported as income. (and the IRS may or may not flag your ATM transfers) Depending on the source of the income, you may or may not be liable for taxes. For example, I believe if it's a "gift" (and you can prove as much) then the first $10,000 is tax free. But don't take my word on that. Your best bet is to get with a tax accountant to determine the best way to declare it.

I plan on wiring about $25000 from Ireland to here in Jan. This money came from a redundancy I received in Ireland at the end of 2008. Any advice on if I have to pay tax and if so how to minimize it?

on that type of money hire a CPA. find out what is needed to bring to usa or even if you wnat to bring all to the usa. it might be better with declining dollar to leave in pounds. if you need money to buy something or pay off your all your debt that is something totally differnt

I plan to use it as part of a down payment on a house? Does that change things? I received the money as a redundancy payment.

[mox 298]

I plan to use it as part of a down payment on a house? Does that change things? I received the money as a redundancy payment.

Again, you really need to talk to a tax accountant about this. Even if somebody here were able to give you a full blown answer, nobody but a tax accountant is going to understand your real situation.

[mox 298]

banks will report 10,001 to irs for money movement. that is per day on a account. if you do 800 a day over the course of a month, you should be good. you pay taxes on income not on moeny you already have. so taxes you will report to gov't is on returns on investments on this money.

no i am not cpa but i am in business and have many tranactions a year that i deposit 10,000 into business account.

so good luck and i would suggest do it over course of 6 months or something like that

Be careful with this kind of advice. Yes, the IRS automatically flags transfers of 10,000 or more, but that doesn't mean they don't flag lesser amounts or any other kind of pattern either randomly or routinely. If you're doing this to evade declaring this money as income, you could be setting yourself up for a nasty fall. Honestly, I have a pretty hard time believing a transfer of $800 per day over the course of a month would not be flagged.