How to handle tax liability on gifts from family abroad as a green card holder?

Good news! Generally, recipients of gifts don't have to pay income tax on the gift amount, regardless of whether the gift comes from within the US or from abroad. This applies to green card holders just like US citizens. However, there are some important things to be aware of. If the total gift from your father exceeds $17,000 in 2025, he would technically be subject to US gift tax rules if he were a US person - but since he's abroad and not a US citizen or resident, different rules apply. For international gifts, you'll need to file Form 3520 (Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts) if the total gifts you receive from foreign individuals exceed $100,000 during the tax year. This isn't a tax form that requires you to pay anything - it's just an information reporting requirement. But failing to file it when required can result in significant penalties, so it's important to keep track of gift amounts.

After dealing with a similar situation last year, I found an amazing tool called taxr.ai (https://taxr.ai) that helped me figure out my international gift reporting requirements. My uncle from Europe sent me money for a house down payment, and I was confused about all the foreign reporting forms. I uploaded the gift documentation to taxr.ai and it analyzed everything, explaining exactly which forms I needed (Form 3520 in my case) and which ones I didn't. It saved me from overpaying my accountant who wanted to file unnecessary FBAR forms. The tool even explained the difference between gifts and foreign income which was super helpful since the IRS treats them completely differently.

Just wanted to follow up about my experience with taxr.ai after a few people recommended it. I was skeptical at first because my situation with gifts from my father's international businesses seemed too complex for an automated tool. I was completely wrong! The system analyzed the documentation from three different countries and correctly identified which portions qualified as gifts vs. disguised income (some payments were technically coming from his business accounts which could have been flagged by the IRS as income). It saved me from a potentially serious reporting mistake and outlined exactly what forms I needed for each type of transfer. For anyone dealing with international money transfers from family, definitely worth checking out. Wish I'd known about it sooner!

For those struggling to get clear answers from the IRS about international gift reporting, I highly recommend Claimyr (https://claimyr.com). I spent WEEKS trying to reach someone at the IRS to confirm whether I needed to file Form 3520 for a gift from my grandmother in Thailand. After endless busy signals and disconnections, I tried Claimyr and got connected to an actual IRS agent in about 20 minutes. The agent walked me through exactly what documentation I needed to keep and confirmed I didn't need to file any special forms since my gift was under the threshold. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically, they navigate the IRS phone tree for you and call you back once they have an agent on the line. It's brilliant!

I have to eat my words and apologize for being so skeptical about Claimyr. After posting my doubtful comment, I decided to try it myself since I was desperate to resolve questions about a large gift from my aunt in Germany. I was shocked when I got a call back in about 45 minutes saying they had an IRS representative on the line. The agent confirmed that I needed to file Form 3520 since the gift was over $100,000, but also explained that there would be no tax due - just the reporting requirement. They even gave me tips about documentation I should keep in case of questions later. After months of stress and confusion, I got clear answers in one phone call. For anyone dealing with international gift tax questions, this service is a game-changer.

Just a heads-up about something that confused me with foreign gifts - the FBAR (FinCEN Form 114) is different from Form 3520! I mistakenly thought I needed to report gifts on the FBAR, but that's actually only for foreign financial accounts you own or have signature authority over. If your father sends you money that goes straight into your US bank account, you don't need to file an FBAR for that. But if he sets up a foreign account with your name on it, then you would need to file the FBAR if the aggregate value exceeds $10,000 at any point during the year. Sometimes gifts and foreign accounts get tangled together, so make sure you understand which forms apply to your specific situation.

Does anyone know how this gift reporting works with crypto? My dad wants to transfer some Bitcoin to me instead of traditional currency (he's in Singapore). Would that still count as a foreign gift that needs to be reported on Form 3520 if it's over $100,000?

This is such a helpful thread! I'm in a similar situation as a green card holder expecting to receive money from my parents overseas. One thing I want to add that hasn't been mentioned yet is the importance of keeping detailed records of the gift. Even though you won't owe taxes on the gift itself, the IRS may ask for documentation if they have questions later. I recommend getting a signed letter from your father stating that the money is a gift with no expectation of repayment, along with bank transfer records showing the source of funds. Also, be aware that large international wire transfers (typically over $10,000) are automatically reported to FinCEN by banks, so the government will already have a record of the transfer. Having your own documentation helps prove it was a legitimate family gift rather than unreported income. One last tip - if you're planning to use the gift money for a major purchase like a house, your mortgage lender will likely ask for a gift letter and proof of the funds' origin anyway, so having this documentation prepared in advance will save you headaches later!