I have a few thousand dollars that I want to move into my checking account, but as I pointed out in my previous question my bank does not have local branches or ATM partners.

I have a friend who will take the cash and deposit it in their account, then write me a check that I can deposit with my bank's app. I trust this person completely.

Is there any danger in doing this (such as potential tax issues)?

  • 11
    Why not just open a second bank account with a bank which accepts cash and pay it in there?
    – niemiro
    Commented Dec 27, 2021 at 14:58
  • 2
    How do you normally make deposits into this account?
    – Barmar
    Commented Dec 27, 2021 at 15:09
  • 5
    Why would you not just pay a few dollars for a postal money order, or for western union to send it to your bank account? Commented Dec 27, 2021 at 16:58
  • 1
    If the amount is no more than a few thousand. Go to a local convenience store and buy money orders and deposit them to your account with a mobile deposit. I did this a few times before I just opened up a bank account with a bank that has lots of branches and keep the minimum balance in there to avoid fees.
    – Travis
    Commented Dec 27, 2021 at 17:51
  • 3
    What happened when you called USAA customer service and asked them what they suggested? Commented Dec 27, 2021 at 20:39

2 Answers 2


No there are no tax issues or anything similar.

You are moving money that you have from one account to another. Your friend is acting as your agent and gains no income or expenditure from the transactions. Neither will trigger any tax concerns. In fact the IRS will not even know about the transactions unless they decide to audit you or your friend. (If the amount is over $10,000 you will have to go through anti money laundering forms.)

Other than the possibility of you friend not being as trustworthy as you think I see no problems.

  • 21
    Note that multiple deposits of just under $10,000 would be even worse than just making one deposit and filling out the forms, because that shows that you're trying to hide it.
    – nick012000
    Commented Dec 27, 2021 at 5:26
  • 3
    @Nelson no, I am saying "Why would the IRS not see this as undeclared income for the friend?". I understand that if an audit were to occur, they could explain this away, but that doesn't mean it wouldn't trigger an audit, right? The answer seems to claim that this could never cause any issues, not that any issues could eventually be resolved, and I am wondering why that would be the case.
    – terdon
    Commented Dec 27, 2021 at 14:15
  • 3
    Having an IRS audit isn't a problem in and of itself. Are you saying it somehow is? Besides, this is tangential and should be a separate question.
    – Nelson
    Commented Dec 27, 2021 at 14:17
  • 4
    How is an IRS audit not a problem? It takes time to respond, and if the person audited engages a professional to assist, which is a reasonable thing to do, money.
    – Lee C.
    Commented Dec 27, 2021 at 15:09
  • 4
    @terdon: The reason it isn't an issue is that making a deposit is not income, and is not even reported to the IRS.
    – Ben Voigt
    Commented Dec 27, 2021 at 16:46

There are no LEGAL issues really (assuming you're in the U.S., of course), although when you say "a few thousand" dollars, you might be careful that your friend might have to answer some questions with his/her bank if the amount goes over $10,000, at which point the bank is required to report the transaction, both for tax and Homeland Security reasons.

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