Slawrence227

Hello everyone, new to this forum, and just waiting for the last few stages of my marriage visa. I'll be moving to the USA at the end of the year hopefully. But had a question about sending money. If I take over $10,000 in cash, I know I need to declare that at the airport. But what about sending all my savings over through bank transfer. Are there any tax issues?

Also - can anyone recommend the cheapest way to send over large amounts of money without getting charges high fees.

Thanks in advance!

MidAtlantic

There are no tax issues.
The best way to send money is to use a money transfer specialist. They will be substantially cheaper than main-line banks. When considering the cost you need to take account of fees (if any) and the exchange rate. Those advertising "no fees" make their money on the exchange rate.
Transferwise and WordFirst are often mentioned here. There are many others. This may help you in your research:

https://moneytransfercomparison.com/

tom169

Give the receiving bank heads up before transfer.

Triple

A second recommendation for Transferwise. The #1 priority when transferring your money is trustworthiness. #2 is low fees. I've used Transferwise many times and think it ticks both boxes.

There are no tax issues transferring your own money to the US. Keep in mind that if you plan on keeping money in the UK (or any other country for that matter) once you become a US resident, and maintain an aggregate balance over $10,000 in any foreign accounts, you will have to report it to the Treasury Department's Financial Crimes Enforcement Network.

MidAtlantic

Not quite correct. $10k in total in foreign accounts requires FBAR reporting. eg $4,001 in one and $6,000 in another requires reporting.
The report goes to the Financial Crimes Enforcement Network (FINCEN), not the IRS.

Triple

Thanks for noting the slip up. Duly edited to avoid causing confusion.

AndyMan74

As a UK/US dual citizen regardless of being a resident in the US or not does one still need to report foreign bank accounts over $10k? I think in the past my UK account has tipped over $10k but for very short periods of time and when i was living in the UK. As it stands now I have about $9000.

MidAtlantic

Yes, as a US citizen you have to report all foreign (to the USA) reports wherever you live if you meet the qualifying threshold. That may involve the FBAR and Form 8938.
Do you have UK pensions? They may also have to be factored in. It can trigger a lot of discussion but, the prevailing view seems to be that defined benefit pensions (mainly government pensions now) do not need to be on the FBAR, but other pensions do.

Slawrence227

Cook_County

FBAR and Form 8938 reporting may be required for non-US financial accounts. If the amounts are substantial there might theoretically be a taxable section 988 (foreign currency) gain but because Sterling has collapsed so much since 2016 this is pretty unlikely these days.