Thursday, January 27, 2011

Do I have to report wire transfers to my account that I gave directly to mom?

My mom had me open up two bank accounts. For whatever reason, she couldn't open one (bad credit; debt to the bank, or something else).

Anyway, my uncle wired $2000 from Korea to pay for his son's expenses (going to school here).

This money landed into my bank account, but my mom snagged all of it (It was for her anyway).

Do I have to report this money on my federal taxes, even though I didn't use or have privy to any of it?


No, but not for the reason that you think.

There is no tax on money sent by a child's father to pay that child's educational expenses.

Was looking for something else and saw your question, which is so easy I decided to go ahead and give you an answer. This is not income, you do not report it as income or as anything else. If big amounts (like over 9k) are deposited into your account, especially from overseas, the bank would be required to report suspicious activity. You have nothing to report on the 2 thousand. If you receive a 1099 form for miscellaneous income, then you have to explain that because that means the IRS knows about it. This 2k sounds like it was never intended to be payment to you. You did no work, you received no income. Non issue.

NOPE

wasn't income or gift

depending on size of transactions, feds may be well aware of the sums anyway

tell Mom to straighten out her finances and set a better example

No comments: