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.
Hello, I’d like to know the tax implications of depositing in a US Bank Account of up to 20,000USD from the Philippines. Do I need to file some forms in BIR before making any move?
Hi Hope,
Thank you for reaching out to Finder.
If you are planning on making a bank to bank transfer from the Philippines, the bank would provide you the regulations on sending large amounts. They will also provide the necessary documents that you need to fill up to ensure that we are within the legalities of the transfer. Hope this helps!
Cheers,
Reggie
I just applied for the green card after I married to a US citizen and now I would like to take $50,000 to the country. I already have US bank account.
Is there any implication with the tax office? Last thing I want to pay tax on money saved up and already taxed at overseas.
Hi Joseph,
Thanks for getting in touch with finder. I hope all is well with you. :)
I could not give you a straightforward answer to your question, Joseph. This is because there are just different factors that determine whether a particular amount of money is taxable or not.
First, you would need to determine the source of the funds. If it is an income you earn, then tax would likely incur. You also need to check the tax law of the US and the country where the money will be coming from. Next, since you are sending a large amount of money, you would need to report it to the IRS using the right form.
Tax law can be very complicated. It would be helpful if you directly speak to a tax specialist.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
What do I need to know if I am buying an apartment in South America?
Hi Juan,
Thanks for getting in touch with finder. I hope all is well with you. :)
There are a few things you need to know before you buy an apartment in South America. First is to check the local real estate laws of the country where you are going to buy an apartment. Meet their legal requirements. From there, you can start looking for an apartment. Assess your needs, budget, and preference to simplify the whole buying process. Finally, seek professional help to obtain personalized expert advice.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
If I receive money on monthly basis at western union, less than $900 every time, so I have to claim that on taxes? Btw, I take that cash and never deposited In my bank account.
Hi M Abouz,
Thanks for getting in touch with finder. I hope all is well with you. :)
If you are receiving an income from overseas, you might need to declare that to the IRS. However, there is a maximum amount of money that you can receive without getting taxed. Speak to a tax professional to get more details about the tax implication of your money transfer.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Through a mess up of the company I work for, NJ child support was overplayed. That overpayment was ‘returned’ to me and now I must return it back to the company. It is a large enough transfer above 20,000. Will I get zapped by taxes, like the gift tax or something?
Hi Skip,
Thanks for getting in touch with finder. I hope all is well with you. :)
Generally, taxes are charged when you made an income from a transaction. In your case, you will be returning money to the company. For this reason, it might not be considered as an income. However, since you are going to send money that exceeds $15,000, you might be charged with gift tax and you will need to file a gift tax return. I highly recommend you check the FAQ Gift Taxes section of the IRS to learn more.
Of course, there are other factors I’m not aware of that might affect the status of the money. It would be a good idea to check with the tax office or speak to a tax specialist to learn more.
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Joshua