agentred

Hey folks,

I had a bunch of money in my bank account in the UK. Now I'm on an H1 visa and I'm having my parents transfer me the money via xe.com . It's not very frequent, ~$1k once every couple of months, but how does the IRS view something like this?

Will I get taxed on the payments? Do I declare it at the end of the year, will lit be a hassle? Should I just keep the money in my British account and use a British credit card to pay for stuff? Will it matter if I transfer it from my bank account (having my parents do it is a little easier than the hassle of on-line banking).

My colleague just went through an audit which sounded like hell so I'm trying to get my American tax situation spotless from day one. Many thanks,

md95065

Since it is your money it isn't income so there is no income tax on it.

You are, however, required to report the fact that you have a foreign account or accounts when you file your taxes if the aggregate value of all of those accounts exceeded $10,000 at any time during the year.

See Report of Foreign Bank and Financial Accounts (FBAR) for details.

ryank

I did this and i had no problems. from Uk to CA. Chase account. good luck