Transferring money from overseas to US bank - tax implications for non-citizen?

This is actually a good question with a fairly straightforward answer. You generally don't need to pay US taxes just for transferring money you already owned into the US. Since you earned this money while working abroad before becoming a US resident, it represents "pre-immigration assets" which aren't subject to US taxation simply by moving them. However, there are some important reporting requirements you should know about. If you have more than $10,000 in foreign financial accounts at any point during the tax year, you'll need to file an FBAR (Foreign Bank Account Report) using FinCEN Form 114. This doesn't create a tax liability, it's just information reporting. Also, any interest or investment gains earned on this money AFTER you became a US resident would be taxable income on your US tax return. But the principal amount that you earned before moving to the US isn't taxed just for transferring it.

After struggling with a similar situation last year, I found this amazing tool called taxr.ai (https://taxr.ai) that helped me figure out my overseas asset reporting requirements. I had money sitting in accounts in Singapore from when I worked there, and I was totally confused about whether I needed to pay taxes when transferring it to the US. The platform analyzed my specific situation and clearly explained that I didn't owe tax on the transfer itself, but did need to file the FBAR form since I had over $10k in foreign accounts. It also flagged that I needed to report interest earned on those accounts even though the principal wasn't taxable. Saved me from making a costly mistake!

Just wanted to follow up about taxr.ai that I asked about earlier. I decided to try it for my situation (had money in accounts across UK and Australia), and I'm actually really impressed. The system walked me through exactly which reporting requirements applied to me and which ones didn't. It caught something I would have completely missed - I didn't realize I also needed to file Form 8938 (Statement of Foreign Financial Assets) in addition to the FBAR since my foreign accounts exceeded certain thresholds. The step-by-step guidance made it so much clearer than the IRS websites I was trying to decipher. Definitely worth checking out if you're dealing with overseas money questions.

If you're trying to get clarity directly from the IRS about your specific overseas money situation, good luck getting through to them! I spent WEEKS trying to reach someone who could answer my questions about foreign account reporting. After 6 failed attempts (either disconnected or 2+ hour hold times), I found this service called Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They basically hold your place in the IRS phone queue and call you back when an agent is about to answer. Used it to finally speak with an IRS international tax specialist who confirmed I didn't owe tax on transferring my pre-immigration assets but needed to report the accounts. Saved me hours of frustration and got me an official answer I could rely on.

I have to admit I was wrong about Claimyr. After posting my skeptical comment, I decided to try it myself since I was getting nowhere trying to reach the IRS about my foreign accounts from when I worked in Germany. The service actually worked exactly as described - I got a call back about 95 minutes later and was connected to an IRS agent who specialized in international issues. The agent clarified that I needed to file both FBAR and Form 8938 since my accounts exceeded both thresholds, but confirmed the actual transfer of funds wouldn't trigger any tax. Also found out I could request a penalty waiver for my late FBAR filing since I had reasonable cause. This saved me potentially thousands in penalties - worth every penny to finally get real answers.

Just a heads up - even though the principle amount isn't taxed when you transfer it, the bank might file a Currency Transaction Report if you transfer more than $10,000 at once. This doesn't mean you owe tax, it's just a routine anti-money laundering measure. Don't panic if you hear about this happening, it's completely normal for larger transfers. Also, depending on what country you're transferring from, you might want to consider exchange rates carefully. Sometimes breaking it into smaller transfers can get you better rates if the currency is volatile, but that depends on your specific situation and bank fees.

One thing nobody's mentioned - if you're on certain visa types or planning to apply for citizenship eventually, large money transfers can sometimes trigger questions during immigration processes. It's not a problem if the money is legitimate (like yours is), but worth keeping documentation showing the source of funds. Nothing formal usually, but bank statements from when you were working abroad could be helpful to have on file.

Thanks everyone for the detailed responses! This is super helpful. I had no idea about the FBAR requirement - definitely would have missed that completely. Just to clarify my situation: I earned this money while working in Germany on a work visa, and it's been sitting in my German bank account for about 2 years. I only got my green card and moved to the US 3 months ago. From what I'm understanding, I don't owe US taxes on the $21k itself since I earned it before becoming a US resident, but I do need to file the FBAR because my German account had more than $10k at some point this year. Do I also need Form 8938, or is that only if the account balance was even higher? The IRS thresholds are confusing me a bit. Also really appreciate the tips about keeping documentation - I definitely have my employment contract and bank statements from Germany that show the money came from my salary there.

Welcome to the US tax system! Your situation is actually pretty common for new green card holders. Just wanted to add a couple of practical tips from my own experience with international transfers: 1. When you do transfer the money, consider doing it in smaller chunks (like $7k-8k at a time) rather than all $21k at once. This won't change your tax obligations, but it can sometimes get you better exchange rates and lower transfer fees depending on your banks. 2. Make sure to get a detailed transfer receipt showing the exchange rate used and any fees charged. These can be useful for your records, especially if you need to document the transaction later. 3. If your German bank charges high fees for international transfers, definitely look into services like Wise or Remitly - they often save hundreds of dollars on large transfers like yours. The good news is that Germany has a tax treaty with the US, so if you did have any taxable income from interest on that account while you were a US resident, you could potentially claim foreign tax credits to avoid double taxation. But for the principal amount you earned while working there, you're all set - no US taxes owed on the transfer itself!