How much money can you transfer without tax? 2025 US guide

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise US Inc. or its affiliates, and it is not intended as a substitute for obtaining business advice from a Certified Public Accountant (CPA) or tax lawyer.

Ever wired a large sum of money and immediately wondered if the IRS was watching? You’re not alone. Whether you’re transferring money to family overseas, receiving an inheritance, or making a generous gift, one question inevitably pops up: How much money can you move before taxes kick in?

The answer isn’t always straightforward. Some transfers must be reported but aren’t taxable, while others could trigger gift tax, income tax, or foreign asset disclosure rules. And then there’s the infamous $10,000 rule — a number that sparks confusion and panic but isn’t quite what people think.

If you’re sending or receiving a large sum, it’s important to know the rules. This guide breaks down how much money you can transfer tax-free, when reporting is required, and what happens if your bank flags a transaction to the IRS. Let’s clear up the confusion once and for all.

In this article we'll look at:
How much money can you transfer without paying taxes? Send high amount, low cost international transfers with Wise Do I need to pay taxes on money transferred from abroad? How much money can you gift tax-free? How to report taxes for large transfers Why are large wire transfers reported to the IRS?

This article has been written in collaboration with Katelynn Minott, CEO and Managing CPA at Bright!Tax US Expat Tax Services.

How much money can you transfer without paying taxes?

Here’s what you need to remember: just because a bank reports a transfer to the IRS doesn’t mean you owe taxes on it. That’s one of the biggest misconceptions people have about large money transfers.

The IRS reporting threshold: The $10,000 rule

Banks and financial institutions are required to report any transaction over $10,000 to the Financial Crimes Enforcement Network (FinCEN).¹ This applies to cash deposits, wire transfers, and other large financial movements. But this rule isn’t about taxing you — it’s part of anti-money laundering laws designed to flag suspicious activity.

If you transfer or receive more than $10,000, the bank automatically files a Currency Transaction Report (CTR) with the government.¹ This doesn’t mean you owe taxes — it’s simply a reporting requirement.

What transfers are actually taxable?

While many large transfers must be reported, they aren’t necessarily taxable. Here’s a breakdown:

Not taxed, just reported:

• Personal transfers (sending money between your own accounts)
• Receiving money from family or friends (gifts may have separate tax rules, but the transfer itself isn’t taxed)²
• International wire transfers (though foreign gifts above a certain limit require separate IRS reporting)

Could be taxable:

• Gifts over the annual exclusion limit (we’ll cover this later)
• Income transfers (if you’re receiving money as payment for services or business transactions, it’s taxable income)
• Inheritance transfers from non-US citizens (which may trigger special reporting requirements)

Personal vs. business transfers

For personal transfers, IRS rules are more lenient — you can move large sums between accounts without tax consequences, as long as it’s not income.

For business transactions, however, things change. If you receive money as payment for goods or services, it’s taxable income, even if it’s under $10,000. And if you’re self-employed or running a business, you must report all earnings, regardless of how they’re received.

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Do I need to pay taxes on money transferred from abroad?

Crossing borders doesn’t automatically mean crossing into taxable territory — at least when it comes to money transfers. The IRS doesn’t tax all international transfers, but it does want to know about them.

Depending on the amount and source, you might need to file extra paperwork to stay on the right side of the rules.

When are international money transfers taxed?

Not all incoming international transfers are treated the same way by the IRS. Here’s the breakdown:

Not taxable (but may require reporting):

• Gifts from family members abroad (but large amounts require IRS disclosure)³
• Foreign inheritances (again, reporting rules apply for large sums)
• Transfers between your own international and US accounts

Taxable:

• Foreign income (wages, freelance work, rental income, or dividends from overseas investments)
• Distributions from foreign trusts or companies⁴

IRS reporting requirements for international transfers

Even if you don’t owe taxes, large foreign money transfers often need to be reported to the IRS.

Here are the key forms you might need:
FinCEN Form 114 (FBAR): If you have more than $10,000 in foreign bank accounts at any time during the year, you must report it to the US Treasury⁵
Form 3520: If you receive a gift or inheritance over $100,000 from a foreign individual or estate, you must report it to the IRS⁶
Form 3520-A: If the money is from a foreign trust, additional reporting is required⁷

Example: A US resident receiving money from family abroad

Let’s say Sarah, a US citizen, receives a $120,000 gift from her parents in the UK. Since it’s a gift, she doesn’t owe taxes on it — but because it’s over $100,000, she must file Form 3520 with the IRS. If she doesn’t, she could face steep penalties, even though no tax is due.

On the other hand, if James, a US expat, transfers $15,000 from his foreign savings account to his US account, he doesn’t owe tax. If his total foreign assets exceeded $10,000 at any point in the year, however, he must file an FBAR.

Learn more about international wire transfer regulations in our full guide.

How much money can you gift tax-free?

Giving money away is easy. The tax rules around it? Not so much.

While the IRS isn’t in the business of taxing every birthday check or wedding gift, large gifts can trigger reporting requirements — and, in some cases, taxes.²

The 2025 annual gift tax exclusion

Each year, the IRS sets a limit on how much you can give to an individual without it being taxed. For 2025, that number is $19,000 per recipient.⁸

This means you can gift up to $19,000 to as many people as you’d like — without filing any paperwork or paying a dime in taxes.

The lifetime gift tax exemption

What if you’re feeling extra generous and give more than $19,000? That’s where the lifetime gift tax exemption comes in.

As of 2025, you can give away up to $13.99 million over your lifetime before any federal gift tax applies.⁹

If you exceed the annual $19,000 limit to a single person in a given year, you simply report the excess on a gift tax return (Form 709) — but you likely won’t owe tax unless you’ve given away millions.¹⁰

Who pays the gift tax?

The giver, not the recipient. If a gift is taxable, it’s the responsibility of the person giving the money — not the person receiving it.

This means that if your relative hands you a generous check, you don’t need to worry about taxes — they do.

Exceptions to the gift tax

Not all gifts count toward the limit. The IRS makes exceptions for:

• Gifts to spouses (if they are US citizens, there’s no limit; for non-citizen spouses, the 2025 exemption is $190,000)¹¹
• Payments made directly to educational institutions (tuition only — not room, board, or books)
• Payments made directly to medical providers for someone else’s expenses

How to report taxes for large transfers

Not all large money transfers are taxed, but if the IRS wants to know about them, you’re responsible for reporting them — not your bank.

While financial institutions handle their own reports for large transactions, you may still need to file IRS forms, depending on the type of transfer.

When do you need to report a large transfer?

If you receive a foreign gift, inheritance, or transfer over certain limits, the IRS requires you to file specific forms. Here’s what you need to know:

• Foreign gifts and inheritances over $100,000 → File Form 3520
• Foreign trust distributions → File Form 3520 and Form 3520-A
• Foreign bank accounts with over $10,000 at any time → File FinCEN Form 114 (FBAR)

Failing to file can result in hefty penalties, even if no taxes are owed.

What about large domestic wire transfers?

For money transfers within the US, your bank handles the reporting, not you. Any transfer over $10,000 triggers a Currency Transaction Report (CTR) to FinCEN, but this doesn’t mean you owe taxes — it’s just for monitoring purposes.

However, if the transfer represents income, a taxable gift, or a business transaction, you must report it when filing your taxes.

How does bank reporting affect your tax filing?

Banks are required to report large transfers, but they don’t determine whether you owe taxes — the IRS does. If the money is from a gift, inheritance, or personal transfer, you likely have nothing to worry about. But if it’s income or a taxable transaction, it must be included on your tax return.

Why are large wire transfers reported to the IRS?

Ever wondered why banks seem eager to notify the government when you transfer a large sum of money? It’s not about taxes — it’s about financial oversight.

The Bank Secrecy Act (BSA) and IRS monitoring

Under the Bank Secrecy Act (BSA), financial institutions must monitor and report large transactions to detect potential money laundering, fraud, or tax evasion.¹² When you transfer or deposit $10,000 or more, banks automatically file a Currency Transaction Report (CTR) with the Financial Crimes Enforcement Network (FinCEN) — a division of the US Treasury.

If a transaction seems suspicious — like multiple small deposits just under $10,000 (a practice called structuring¹³) — the bank may also file a Suspicious Activity Report (SAR).¹⁴ These reports aren’t shared with you, and banks are prohibited from notifying customers when they file an SAR.

Does IRS reporting mean you owe taxes?

No. CTR filings are not tax bills — they are monitoring tools. The IRS doesn’t assume a large transfer means tax fraud, but if they notice irregular patterns (especially with unreported income), they may investigate further.

Are there any exceptions?

Not all large wire transfers raise red flags. Some common transactions don’t trigger tax obligations:

• Money received from immediate family: If your parents send you $50,000 for a down payment, it’s not taxable — though large foreign gifts may require Form 3520
• Transfers between your own accounts: Moving $20,000 from your savings to your checking account? No problem. It’s still your money
• Educational or medical expenses: If someone pays tuition directly to a university or a medical bill to a hospital, it’s exempt from gift tax rules

While banks still report transactions over $10,000, these types of transfers rarely trigger additional scrutiny.

What happens if a wire transfer over $10,000 is not reported?

If a bank fails to report a large transfer, they — not you — are on the hook for compliance issues. However, if you attempt to evade reporting requirements by structuring payments or failing to report foreign transactions, you could face serious penalties, including:

Failure to report foreign gifts or accounts:

• $10,000+ penalties for not filing FBAR (foreign bank account reporting)¹⁵
• Up to 25% of the unreported amount in fines for missing Form 3520¹⁶

Structuring transactions to avoid the $10,000 threshold:

• Fines up to $250,000 and potential criminal charges

The key takeaway? There’s nothing wrong with making large transfers — as long as you report them properly when required.

Final thoughts: Reporting vs. taxing

The truth is, most large transfers aren’t taxed at all — just observed. The IRS tracks big transactions to keep an eye on financial activity, not to send out surprise tax bills. International transfers can be more complex, but even then, reporting rules are often more about disclosure than taxation.

If you’re moving large sums and aren’t sure where you stand, a quick check with a tax professional can save you from unnecessary stress. Knowing the rules means you can transfer money freely — without second-guessing every wire.

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This article has been written in collaboration with Katelynn Minott, the CEO and Managing CPA at Bright!Tax US Expat Tax Services. Katelynn is the CEO at Bright!Tax US Expat Tax Services, and has helped thousands of American expats become compliant with their US filing obligations over the last 10 years. She spent time as an expat herself, residing in both Chile and Brazil. She was recognized by CPA Practice Advisor's with a 40 under 40 award in 2021 and is a regular contributor to various media outlets including CNBC, Forbes, and Fast Company.

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Sources

1. FinCEN - CTR reference guide
2. IRS - FAQs on gift taxes
3. IRS - Large gifts or bequests from foreign persons
4. IRS - Foreign tax credit compliance tips
5. IRS - Report of Foreign Bank and Financial Accounts (FBAR)
6. IRS - Form 3520
7. IRS - Form 3520-A
8. IRS - Gifts inheritances
9. IRS - IRS releases tax inflation adjustments for tax year 2025
10. IRS - Form 709
11. IRS - FAQs on gift taxes for nonresidents not citizens of the US
12. OCC - Bank Secrecy Act (BSA)
13. IRS - Structuring
14. NCA - Suspicious Activity Reports
15. IRS - FBAR reference guide
16. IRS - International information reporting penalties

Sources checked 03/21/2025