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    talhasaleem1990's Avatar
    talhasaleem1990 Posts: 41, Reputation: 1
    Junior Member
     
    #1

    Mar 12, 2022, 07:56 PM
    Sent money back home, now do I have to file a gift tax return?
    I sent my parents some money to help pay for medical expenses ($18k+ in 3 payments, directly into my Dad's account). He's not a US citizen. Now do I have to file gift taxes for those transfer(s)? Or is there no need?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,834, Reputation: 846
    Senior Tax Expert
     
    #2

    Mar 12, 2022, 08:36 PM
    It would have been better if you paid the medical bills directly, but you can designate half the money to your father and half the money to your mother, which puts the gift well BELOW the annual gift exclusion, making the gift tax return unnecessary.

    ATE
    talhasaleem1990's Avatar
    talhasaleem1990 Posts: 41, Reputation: 1
    Junior Member
     
    #3

    Mar 12, 2022, 11:28 PM
    I should have clarified that I sent $18k to my dad for just the medical expenses and another $27k for some home repair and living expenses (they don't have a source of income), so in total its $45k for 2021.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,834, Reputation: 846
    Senior Tax Expert
     
    #4

    Mar 13, 2022, 12:06 AM
    Then a gift tax return will be needed.

    No TAX will be due because the Unified Credit will cover any potential tax.

    Had you paid the medical bills directly to the doctor or hospital, the $27K would have been covered by the annual exclusion.

    If you need help with the gift tax return, email me at [email protected].

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