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I am a US Citizen . What amount can I receive as a gift in one year from my parents who are not US Citizens [or green card holders].

Do I have to declare these gifts and is it to be declared at the time of filing my taxes through form 3520?

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According to the IRS:

In general, a foreign gift is money or other property received by a U.S. person from a foreign person that the recipient treats as a gift or bequest and excludes from gross income. A “foreign person” is a nonresident alien individual or foreign corporation, partnership or estate.

Further down it states that if it is over $100,000 in aggregate, then it must be reported on the Form 3520. But there is no "maximum" that you can receive.

According to TurboTax:

The US tax rules (in best of my knowledge) says that If a foreign citizen/residents want to send a gift (cash etc) to a US Citizen/legal resident and amounts will be less than $100000 then there is no US tax requirement but in case amount exceed $100000 then US Citizen/legal resident have to report in Form No. "3520" to IRS. But I advise always file form 3520 (whatever the amount) to support of your bank account trail for future reference. There will be no tax at all in the above situation.

So from the above two sources, you must file a Form 3520 if it's over $100,000. As always, please contact a CPA regarding complex tax returns/questions.

  • Thank you. As a us citizen can I give gifts to different people in one financial year of $14,000 each . Will those be tax free as I have not given to one person over 14,000? – MEHER Aug 1 '17 at 12:18
  • @MEHER You can give individuals up to $14,000 without having either party pay taxes. But there is a lifetime limit of 5.45 million (in 2016). turbotax.intuit.com/tax-tools/tax-tips/… – Michael Aug 1 '17 at 14:22
  • @meher don't ask questions in comments, make a separate post. We can't up/down vote comments and they get lost. Also Michael, don't answer in comments either XD. – Mindwin Aug 30 '17 at 17:52

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