If my parents send me money, what is the procedure to do so without the (already tax-paid in India) funds coming under double taxation? Would I have to declare such 'income' and if so what is the process to indicate it is a gift and avail of any taxation treaties between US & India?

I am currently on a U.S. Green Card, if I switch to US citizenship in future how would this affect the situation?

  • US taxation is essentially the same for green card holders and citizens. – phoog Aug 6 '17 at 18:17

Money received as a gift might not be income, under the IRS rules. In general, income is money received for work or through investments. The IRS is very clear: income from abroad is taxable, for both resident aliens and US citizens.

Your individual circumstances will determine whether you need to consult a tax attorney to ensure that you are reporting accurately and within the law.

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  • Gifts are certainly income. They are unearned income, as opposed to earned income. Gifts are subject to special tax treatment, so the advice to consult a tax professional is well heeded, but the curious stack exchange user may find some answers at Personal Finance & Money. – phoog Aug 6 '17 at 18:15

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