Will I have to pay gift tax if I receive $20k from my parents who are in the foreign country?

My parents are in Asia. I am in NJ. They want to wire-transfer me $20K to my bank as a gift. Since they are not in the US, I don't think the US tax rule will apply to them. In that case, will I have to pay for the gift tax? And do I have to report that I get this $20K gift?

Will I have to pay gift tax if I receive $20k from my parents who are in the foreign country?
In the U.S. the person who receives a gift does not pay the tax. Your parents can send you gift of any amount, you don't pay any gift tax. Since the donor is a foreign person (no SSN or ITIN), they need not worry about the U.S. tax on donor of the gift.





However, since it is coming from a foreign country, the IRS wants to make sure that it is a actually a gift. So you must file File 3520 Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts if the amount in 2007 is more than $13,258.





If you don't want to file Form 3520, get $10,000 in 2007 and $10,000 in 2008.
Reply:giver pays the gift tax, not the receiver
Reply:They gift tax falls on them, if they file, but.. they can split the gift (10k from mom and 10k from dad) and the $12,000 exemption is not met,,, there fore, no tax for anyone.
Reply:Unless your parents are US citizens or US resident aliens, the US gift tax law does not apply to them.





Since you are receiving money from outside the US, look at IRS form 3520. From a trust, the filing requirement is very low (around $12-13,000); from individuals, the filing requirement kicks in at $100,000 in one year.