United Money & Taxes
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Tax questions on gifts & large transfers to/from Nepal
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About
Who this is for
US persons sending large sums to family in Nepal — or receiving large gifts/inheritances from Nepal.
Sending money to family (the common case)
- Ordinary monthly support / normal remittances may be treated as gifts, not income to the recipient, but gift-tax rules and reporting can apply to the giver. Check the current annual exclusion and Form 709 rules on IRS.gov before relying on a "nothing to report" assumption.
- Gift tax is the giver's concern, not the recipient's — and even above the annual exclusion, most people owe no actual tax because of a large lifetime exemption; you may just need to report the excess on Form 709 (which draws down that lifetime amount). Confirm current figures with a CPA.
- Income the money earns (if you're moving investments, etc.) is a separate question — ask a CPA.
Receiving a large gift/inheritance from abroad
- If you (a US person) receive a large gift or inheritance from a foreign person/estate above a threshold, you generally must file Form 3520 — an information report, usually no tax owed.
- Don't skip it — the penalties for a missed 3520 are significant even when no tax is due.
Steps
- Most everyday remittances: keep simple records and check whether gift-tax reporting applies before assuming there is nothing to file.
- Sending a large gift: know the annual exclusion; above it, plan to report on Form 709 (likely no tax due via the lifetime exemption) — confirm with a CPA.
- Receiving a large foreign gift/inheritance: check the Form 3520 threshold + file if required.
- Keep records of large transfers (amounts, dates, relationship).
- For anything large, use a CPA familiar with foreign gifts/transfers — this is worth professional help.
Frequently asked
Do I owe tax for sending money to my parents?
Generally no for ordinary support; very large gifts may need reporting (rarely actual tax). Confirm thresholds.
Does my family in Nepal owe US tax on what I send?
No — they're not US taxpayers on a gift from you.
I'm inheriting money from Nepal — is it taxed?
Often no US income tax on the inheritance itself, but a large foreign gift/inheritance may need Form 3520 reporting — check + file.
Is this the same as FBAR/FATCA?
No — those report foreign accounts; this is about gifts/ transfers. (See the FBAR/FATCA guide too.)
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