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Old 08-17-2015, 07:31 PM
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Default H1B - Remitting money to parents in INDIA

I am currently on H1B.

I have been in US since 2013.

I want to send some money to my parents in INDIA.

One of my friend told not to transfer more than $14,000/- per year as this will attract gift tax.

I am not sure about this.

All my savings are after taxes & social securities been paid. And I have filled IT return as well.

It will be helpful if someone can throw some light on this.

Why I need to pay any more tax than has already been deducted from my salary ?

I am just remitting my after-tax savings.
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Old 08-18-2015, 02:19 PM
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If you are sending money overseas as a gift, the limit of sending gift amount is USD14,000 each year.

However, you can send amount above it but it is required to report it to IRS, and a gift tax is applied on the entire amount.

Please check Form 709 - United States Gift (and Generation-Skipping Transfer) Tax Return
http://www.irs.gov/pub/irs-pdf/i709.pdf
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Old 08-18-2015, 02:27 PM
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Here are few scenarios from turbotax. If your remittance is more than $14,000 example 3 might be appropriate for you.

Example 1

In 2014, you give your son $15,000 to help him afford the down payment on his first house. This is a gift, not a loan. You must file a gift tax return and report that you used $1,000 ($15,000 minus the $14,000 annual exclusion) of your $5.34 million lifetime exemption.

Example 2

Same facts as above, except that you give your son $13,000 and your daughter-in-law $2,000 to help with the down payment on a house. Both gifts qualify for the annual exclusion. You do not need to file a gift tax return.

Example 3

Same facts in Example 1, but your spouse agrees to "split" the gift—basically this means he or she agrees to let you use part of his or her exclusion for the year. One spouse, for example, could give $28,000 to his son without triggering the gift tax if the other spouse agrees not to give the son any gift that year. Although no tax is due in this situation, the first spouse would be required to file a gift tax return indicating that the second spouse had agreed to split the gift.
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Old 08-19-2015, 08:08 AM
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tekot200 is on a distinguished road
Default Gift tax ?

My spouse & son has moved to INDIA this april. They stay with my parents. My parents are taking care of all of their expenses including my son's school expenses. For their maintenance I am remitting this money to my parents.

Would this still count as gift ?
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Old 08-19-2015, 09:45 AM
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Quote:
Originally Posted by tekot200 View Post
My spouse & son has moved to INDIA this april. They stay with my parents. My parents are taking care of all of their expenses including my son's school expenses. For their maintenance I am remitting this money to my parents.

Would this still count as gift ?
If you are sending it to spouse, it does not count as gift. However if you are sending it to dad it does count as gift.
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