i saw multiple questions dealing with the topic. But they were bit old and i would like to ensure that there hasnt been any rule changes

My parents are Indian citizens and they have bank account in India. I am an Indian citizen too. But i have been in USA for last 12 years and planning to settle here. I am working in USA. I am on EAD right now . I am very close to getting my green card

My questions below

  1. I have NRE/NRO accounts in an Indian bank. My parents have normal accounts in that same bank. How could My parents transfer money to me ?
  2. I read that there is no annual cap to money transferred. Is that correct? is there any lifetime cap on money transferred
  3. My CPA told the money transferred by parents is not my income, i dont have to pay tax on it. is it correct?

No, that's not fully correct. Any money you get from anyone for any reason is in principal taxable.

If your parents transfer you money, it's not income (unless you worked for it), but then it is a gift. Gifts are taxable (but they have to pay the tax). If your parents are not required to file US taxes, then there are no US taxes on it. They may owe Indian gift tax; I don't know if such a thing exists.

Note there are annual and life-time exception amounts for the US gift tax too, and they are pretty high.


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