How to transfer savings to USA after immigrating for first time?

[samaab87 20]

Hi everyone

i am waiting on my CR1 spouse visa. Expecting it soon. 

 

My question is:

my father wishes to transfer me an amount above $10k after I immigrate to help me settle down. What are the procedures to do that? 

 

For example: as far as I know:

getting SSN. 

Opening a bank account. 

Filling up a form for IRS stating info. 

Gathering source of income docs etc

 

My father also has a tourist visa and plans to visit soon after I move there. Can he also open a bank account? 

 

Which banks are recommended?

 

any help would be appreciated! 

 

 

[Redheadguy03 505]

2 hours ago, samaab87 said:

Hi everyone

i am waiting on my CR1 spouse visa. Expecting it soon. 

 

My question is:

my father wishes to transfer me an amount above $10k after I immigrate to help me settle down. What are the procedures to do that? 

 

For example: as far as I know:

getting SSN. 

Opening a bank account. 

Filling up a form for IRS stating info. 

Gathering source of income docs etc

 

My father also has a tourist visa and plans to visit soon after I move there. Can he also open a bank account? 

 

Which banks are recommended?

 

any help would be appreciated! 

 

 

You can't usually  open a bank account without a social security card. So, as a tourist he might have a hard time with it. 

 

As for the money, you'll probably have to pay taxes on it since it's such a high amount. Their are tons of banks, so you need to see what's in your area as they all have different features and things you may not like or like. 

[millefleur 5,046]

1 hour ago, Redheadguy03 said:

You can't usually  open a bank account without a social security card. So, as a tourist he might have a hard time with it. 

 

As for the money, you'll probably have to pay taxes on it since it's such a high amount. Their are tons of banks, so you need to see what's in your area as they all have different features and things you may not like or like. 

If the money is savings and not income he will not have to pay taxes on it. Taxes are only necessary for money reported as income.

 

Agree about the SSN: it will be difficult to open an account without one. Consider opening the bank account in your own name/SSN and having a friend or family member transfer you the money once you're in the US.

[Redheadguy03 505]

7 minutes ago, millefleur said:

If the money is savings and not income he will not have to pay taxes on it. Taxes are only necessary for money reported as income.

 

Agree about the SSN: it will be difficult to open an account without one. Consider opening the bank account in your own name/SSN and having a friend or family member transfer you the money once you're in the US.

If the money is given to him wouldn't it fall under something like a gift tax? That's like if I won the lottery and gave some to my family they'd have to pay taxes because it's a gift tax. Even though I already paid taxes when I initially got it. 

[millefleur 5,046]

40 minutes ago, Redheadguy03 said:

If the money is given to him wouldn't it fall under something like a gift tax? That's like if I won the lottery and gave some to my family they'd have to pay taxes because it's a gift tax. Even though I already paid taxes when I initially got it. 

We just had a big discussion about this in a similar thread, which might interest the OP:

 

[kausar 26]

Open an account in US. you will be provided information regarding bank address, wire transfers and swift code etc. open an account in Pakistan in dollars, deposit dollars and tell the bank to transfer the amount u want to transfer in the US bank account. your bank in Pakistan will give you the information regarding the limit and the charges. We transferred an amount of $7000/ yesterday from HBL foreign currency acctt. to  our acctt in Bank of America. Amount was transferred next day and total amount transferred was $6935/ ( $15 were charged by BOM as wire transfer charges and $50 by HBL).

[Jojo92122 1,924]

2 hours ago, Redheadguy03 said:

If the money is given to him wouldn't it fall under something like a gift tax? That's like if I won the lottery and gave some to my family they'd have to pay taxes because it's a gift tax. Even though I already paid taxes when I initially got it. 

No.  Gift tax is on the person giving the gift, never the recipient.  Gift tax is never an issue when the person giving the gift is a foreign person because the IRS encourages foreign capital be brought into the US to benefit the US economy.  Furthermore, the annual gift tax exemption is $14,000.

[samaab87 20]

5 hours ago, Jojo92122 said:

No.  Gift tax is on the person giving the gift, never the recipient.  Gift tax is never an issue when the person giving the gift is a foreign person because the IRS encourages foreign capital be brought into the US to benefit the US economy.  Furthermore, the annual gift tax exemption is $14,000.

Thanks for the info. So any amount above $14,000 is exempt from gift tax? 

 

Is this the form I am supposed to fill up? 

https://www.irs.gov/pub/irs-pdf/f3520.pdf

[samaab87 20]

My concern is how can my father transfer the funds/savings to my account in the US (after I arrive)?

 

Should we open an account in an international bank which exists in both home country and US?  For example: HSBC?

Or

Should I just open an account in a local US bank and get it transferred there from the local home country bank of my father?

 

Which is the best way to go? 

Edited June 4, 2017 by samaab87

[samaab87 20]

8 hours ago, kausar said:

Open an account in US. you will be provided information regarding bank address, wire transfers and swift code etc. open an account in Pakistan in dollars, deposit dollars and tell the bank to transfer the amount u want to transfer in the US bank account. your bank in Pakistan will give you the information regarding the limit and the charges. We transferred an amount of $7000/ yesterday from HBL foreign currency acctt. to  our acctt in Bank of America. Amount was transferred next day and total amount transferred was $6935/ ( $15 were charged by BOM as wire transfer charges and $50 by HBL).

Limit? There's limits? 

 

I wasn't aware of that. If  you don't mind sharing what is the average limit? and is it like per day or month or something?

 

Which US bank would you recommend for international transfer? In terms of fees and service?

[samaab87 20]

8 hours ago, millefleur said:

We just had a big discussion about this in a similar thread, which might interest the OP:

 

Thanks. I am keeping myself updated on it.

[mallafri76 1,012]

First off, yes you can open a bank account even though you don't live in the US. I opened my account with Bank of America while visiting the US on the VWP years before I moved here. You need two sets of ID and to make a small deposit.

 

I've transferred about $70,000 to the US from my foreign account in several different transfers. If you transfer $10,000 or more, your bank will report the transfer and you may have to fill out an FBAR form. Do not try and circumvent this by doing two transfer, as that can be seen as you trying to trick the IRS and you may get your money sized.

 

If your dad is not an LPR or USC and he's from a country that has a tax agreement with the US then no, you do not have to pay tax on the gift he's giving you.

 

 

[Jojo92122 1,924]

7 hours ago, samaab87 said:

Thanks for the info. So any amount above $14,000 is exempt from gift tax? 

 

Is this the form I am supposed to fill up? 

https://www.irs.gov/pub/irs-pdf/f3520.pdf

No.  Gifts totally under $14,000 for the year is exempt from the gift tax.

 

That form is for something else.

 

There is no gift tax and no form when your father is giving you $10,000.  Furthermore, your father is not a US citizen or green card holder, so the gift tax does not apply to him.

 

[kausar 26]

17 hours ago, samaab87 said:

Limit? There's limits? 

 

I wasn't aware of that. If  you don't mind sharing what is the average limit? and is it like per day or month or something?

 

Which US bank would you recommend for international transfer? In terms of fees and service?

You can transfer under $10,000/ easily. sending above this amount, a lot of documentation is probably required. We never transferred more than $10,000/, bank will, however, be  the authentic source of information,  we have an account in Bank of America and one in Chase Bank. both are fine for transfers. american bank will only charge wire fee. Pakistani bank charges transfer fee.

[abfar 119]

I talked to HBL in Pakistan. They charge whooping 4% as transfer fee. So if you transfer 10,000 USD, Its crazy to pay them USD 400 just in fee, and then they rip off in below market conversion rates as well, so basically 500 to 600 USD gone in bank transfers!