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somu_banerjee · Jul 21, 2012, 08:43 AM

Question on Sending money to parents:(I am working on H1b visa in USA)

Hi,I know as per Gift Tax Laws in USA I can send a max money of 13,000 to each parents in foreign country.Beyond that I need to pay gift tax.

Now my questions are

1)if I send money to joint account of my parents(Dad and Mom are joint holders),in that case can I send up to 26,000 US dollars?

2) How to identify the transfer as a gift?Is there a way to do that?

3) Is an online money transfer via ACH debit considered as gift?

Please advise.

AtlantaTaxExpert · Jul 21, 2012, 09:50 AM

1) Yes, you can gift to your parents a total of $26,000

2) You do NOT need to identify the transfer as a gift.

3) Yes, it can be considered to be a gift.

Now, if you give more, you will need to file a gift tax return, but you will NOT pay any gift taxes.

somu_banerjee · Jul 21, 2012, 10:08 AM

Thanks a lot buddy.You are a tax-wizard! My hats off to you.

AtlantaTaxExpert · Jul 21, 2012, 11:13 AM

Glad to help!