1

My brother works in field of Digital Marketing at Pakistan. His clients are mostly in United States.

His clients normally pay him via wire transfer which works fine but some money gets deducted from him in the process. I live in United States and nowadays visiting home at Pakistan.

Can I have his client send me my brother's pay (which is around $5k-$7k) to my United States based bank account and I pay the equivalent to my brother here in Pakistan in cash. For now, its just a one time thing.

  • Is this all legal?
  • Will it have any tax related implications on me provided that I have Green Card?

I am not really earning that money. It is kind of like I am paying a loan to my brother and my brother pays me back via someone else. That "someone" happens to be his client in this case.

  • 2
    I'm not an accountant or any expert on taxes, but this would seem really fishy to me if I was your bother's employer or the IRS. – grfrazee Jun 6 '18 at 20:03
2

It is kind of like I am paying a loan to my brother and my brother pays me back via someone else.

The authorities may not agree with you.

Will it have any tax related implications on me provided that I have Green Card?

The tax implications are not just for Green Card holders, depending on time you have spent in US; you may be classified as Resident Alien and the taxes will be same as US Citizens.

Is this all legal?

As an US tax resident, the IRS may deem this as income to you and ask to you pay appropriate taxes. You can explain that this is not an income and the funds are transferred to you as convenience and you have transferred it to your brother.

From Pakistan taxation, this will look like circumventing the Foreign Exchange Regulations. Essentially only Authorized dealers can convert currency. In this case you are converting it.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.