Do I need to pay US taxes on income received from abroad when helping family?

This is a great question with some important international tax implications. As a US citizen, you're generally taxed on your worldwide income regardless of where it comes from. When your grandmother returns your original investment, that portion wouldn't typically be taxable since it's just returning capital you already owned. However, any additional amounts beyond your original investment would likely be considered income and would be taxable in the US. If she's sending you "gifts," the IRS might view these as disguised income if they're related to your investment. The fact that you provided funding and expect returns makes this look more like an investment arrangement than true gifts, even if the business is in her name. You might also need to consider Foreign Bank Account Reporting (FBAR) requirements if you have financial interests or signature authority over foreign accounts that exceed $10,000 at any point during the year.

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Something nobody's mentioned yet - make sure you look into whether this arrangement could be considered a PFIC (Passive Foreign Investment Company). If your grandmother's business meets certain tests, your gains could be subject to complicated and usually unfavorable PFIC tax rules. Also, depending on how much you've sent, you may need to file Form 8938 (Statement of Specified Foreign Financial Assets) if your investment exceeds certain thresholds. The penalties for not filing these international information returns are harsh.

Honestly the bigger issue is that ur grandma considers u an "owner" but legally ur not. This is a HUGE risk. If something goes wrong with the business, u have zero protection. If she passes away suddenly, u have no legal claim to anything. I'd strongly suggest getting an actual ownership agreement in writing, even if it's a small percentage. Otherwise ur basically making an unsecured loan with no documentation.