It depends. Most money transfers aren’t taxable, but large transfers can be, depending on what the money is and whether you’re sending or receiving it.
For 2026, taxes on money transfers generally only come into play with very large gifts: over $15 million over your lifetime. Transfers that count as income or certain international transfers must be reported, but they may not be taxed if they’re small amounts.
The penalties for not paying owed taxes can be steep.
Avoiding taxes on money transfers, making false tax entries, covering up sources of income, or using other tax evasion or avoidance tactics can have these consequences if convicted:
There’s no set dollar cap on how much money you can transfer without triggering taxes, domestically or internationally. What matters is why the money is being transferred.
Starting January 1, 2026, a new 1% remittance tax applies to certain money transfers sent from the US to another country. It applies when you pay for your transfers with cash, money orders or cashier’s checks.
This new remittance tax will be collected by the remittance service provider itself. This is the bank or provider you use for your money order, cash payment, cashier’s check or other physical transfer type. The exception to the remittance tax applies when money transfers are funded with a debit card or a credit card issued in the US.
Your remittance service provider should let you know whether your transaction will be subject to remittance tax.
The gift tax requires you to pay taxes on any large monetary gifts over a certain threshold.
As of 2026, you can gift up to $15 million in your lifetime without owing this tax, but you’ll have to file a form if you’ve gifted more than $19,000 in the past year. If you’re married, both you and your spouse can give $19,000.
Each year, the IRS tracks any gifts that exceed the annual gift exclusion amount. And your excess gift amount will continue to accumulate until it reaches the lifetime gift tax exclusion.
Note that though you’ll have to file a gift tax return for any gifts exceeding the $19,000 annual gift tax exclusion, you won’t need to pay gift tax until you’ve given away over $15 million in your lifetime. Most people will likely never come close to the lifetime limit.
That said, given the complexities of tax laws, it’s smart to seek the help of someone who knows the laws to ensure you’re in compliance of them.
The sender (aka the donor) pays the gift tax.
If a gift is large enough to require reporting, the person giving the money is responsible for filing IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return). The recipient never has to pay gift tax and doesn’t need to report the gift as income on their tax return.
If you give someone money and don’t expect any goods or services in return, it’s a gift. Tuition, medical expenses, gifts to political organizations and gifts to a spouse are exempt.
If you’re helping your children with tuition or medical expenses, pay the school, hospital or insurance companies directly. The IRS will notice — and expect to be notified — of any checks or transfers you send directly to your dependents.
By law, banks report all cash transactions that exceed $10,000 — and any transaction of any amount that alerts their suspicions. Money transfer businesses, which often solely send money between countries, sometimes have reporting thresholds as low as $1,000.
The Bank Secrecy Act allows the IRS and Department of Justice to investigate large transfers to identify illegal activity more efficiently. There are also numbering systems used to process money transfers that make it easy for the government to track funds, even if they’ve been sent to an overseas account.
Depending on how much you’re sending and why, the IRS may require you to fill out any number of tax forms:
| Form Number | Form Name |
|---|---|
| Form 114 | Foreign Bank and Financial Accounts (FBAR) File if, in the past year, you’ve had a foreign account valued at more than $10,000. |
| Form 709 | Gift (and Generation-Skipping Transfer) Tax Return File if you’ve given away more than $18,000 in the past year |
| Form 3520 | Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts File if you received a gift of more than $100,000 from a person in another country or if you received a gift of more than $20,116 in 2025 from a foreign corporation or partnership. |
| Form 8938 | Statement of Specified Foreign Financial Assets File if the total value of all your foreign accounts and combined assets was worth $50,000 or more on the last day of the year or $75,000 or more at any point in the last year. ($100,000/$150,000 for married couples filing joint returns.) |
| Form 8300 | Report of Cash Payments Over $10,000 Received in a Trade or Business If you own a business that sent $10,000 or more in cash payments, bank drafts, money orders, checks or traveler’s checks in the past year. |
You usually don’t pay taxes just because money moved between accounts. And taxes typically only apply when transfers involve very large gifts, income or specific reporting requirements, especially with international transfers.
If you’re ever confused about or unsure whether a transfer could be taxable, talk to a tax professional who can look at your specific situation.
Do you need to send a large amount of money to Mexico? Learn about related laws and required documentation.
Are you due to receive a large sum of money from another country? Familiarize yourself with laws and required documentation.
I want to purchase a house overseas. I will send money to my wife, to her account. I do not have an account and the title will not be in my name. What is required for reporting and filing in USA and Philippines?
Hi Bob,
Thank you for getting in touch with Finder.
Since you want to send a large sum of money to your wife in the Philippines, I would recommend you to check the tax guidelines and regulations for large money transfers into the Philippines.
Please note, if you send more than $14,000 to the Philippines, encourage your recipient to claim your remittance on their annual income tax filing.
I hope this helps.
Have a great day!
Cheers,
Jeni