Q: Taxation on bringing in over 10k from oversea
My dad is giving me $20k in traveller's cheques as part of my tuition and living cost here in US. I'm a citizen myself and I know I'll need to declare any amount over 10k at the custom.
My question is, will I be taxed on this amount of travellers cheques by the irs? I don't think this is considered as a working income at all
And how would I prove to irs that it's a gift and not an income?
A: You would not have to pay taxes on this because it is a gift. If your total gifts from your dad plus gifts from any other foreign persons related to your dad for the year are more than $100,000 USD, then you would need to file an IRS Form 3520 to declare the total value of the gifts you received for the year.
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