Question

Mexican parents gifting me in cash more than $ 20000 to pay my private student loans.

Forum|Forum|6 years ago
June 25, 2019
1 reply
0 views

Short story: my mom is Mexican. She leaves in Mexico, is gifting me around $20000 to pay off some private student loans.(I am US citizen). I am going to have any problems? Can I still use the unified Gift tax for cash?
I am depositing the cash in my bank and the pay off the loan. I have also papers of how my mom got that cash as well. Thoughts?

DoninGA

A gift received from an individual is not reported on your tax return, regardless of the amount received.

A recipient of a gift never pays any type of gift tax. Only the giver of the gift has to report the gift given if over $15,000 using IRS Form 709, but no gift tax would be owed if the total of all gifts ever given was under $11.18 million. But since the giver of the gift is not a US citizen or US resident, they have no requirement to report the gift.

Your only reporting requirement would be if the gift received from a foreign individual was over $100,000 and then have to file an informational Form 3520 with the IRS.