Who Pays US Gift Tax?
The gift tax may happen when the transfer of property by one individual to another, whether the donor intends the transfer to be a gift or not.
There are three circumstances for you to check if you have to report the gift in your tax return and pay the gift tax.
1. If you’re a US citizen, having green card or resident alien and receive gift from a foreigner (Taiwanese), who is not a US citizen or legal resident,
→ There will be no tax due for you and also your donator. Only when the gift in excess of 100,000 USD is need to be reported.
2. If you’re a US citizen, having green card or resident alien and receive foreign gift from a US citizen.
→ You don’t have to report this on your tax return. Only the donor has to do it.
3. If you’re a US citizen, having green card or resident alien and donate to a foreigner (Taiwanese) or US citizen.
→ Only when the gift values over 15,000 USD/per year each person, you have to report it on your tax return. Each US citizen has 11,580,000(tax year 2020) gift tax exemption in whole life. If your total gifts didn’t value over this amount, and there is no tax for you.
USCPA Sophie Luo (羅霞) reminds you that there is a penalty if you have the obligation to file the gift tax but you didn't file it. Do not ignore the importance of filing gift tax.
Read more: How Much Estate and Gift Tax Exemption Do I have? Give Away the Gift Before 2026!
If you have any questions or need further help,
please contact us at the USCPA Sophie Luo (羅霞) +886 980919600
or Email: ustaxproservice@gmail.com
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