Cash Gifts from non US citizen, should I put this on FAFSA 45J ?

Paying for College
1

Hi, guys.

I am independent student since I am married, my spouse made around $9,500 last year.

I receive $4,000 as gift every month from my parents ( they are non US citizen and live in foreign country ) through wire transfer.

I use it for my everything ( rent fee, auto loan, and etc… ).

The gift amount will not show up on tax report since it is under $100,000.

Should I put $48,000 ( $4,000 x 12 month ) on FAFSA 45J question which is “Money Received, or Paid on Student’s Behalf” ?

  • I can skip the asset questions, can I consider $48,000 as my asset ?
2

I think if it’s asking if someone is paying bills that are in your name and that seems to be the case, then you will need to list it as income.

The amount, if any, that isn’t spent and in a bank account, will be an asset.

3

If you skip the assets//income questions, does question 45 even show up?

4

Money received, or paid on your behalf (e.g., bills), not reported elsewhere on this form. This includes money that you received from a parent or other person whose financial information is not reported on this form and that is not part of a legal child support agreement.

What you describe seems to fit the language above, from FAFSA line 45.j.

5

What if I received huge amount money as birthday gift, would it be “supporting” ?

6

Yes, I can skip the asset questions but I still have to answer question 45

7

Yes, I believe you will have to list that $48,000 a year you receive from your parents. It doesn’t matter that they are NOT citizens of this country.

What does this mean?

8

Guess the OP edited OUT the part about it not showing up on a tax report because it was less than $100,000.

9

@BelknapPoint, I think OP might be referring to this:

https://www.irs.gov/businesses/gifts-from-foreign-person

10

If you received it from someone whose financial information is not reported on the FAFSA (and this includes your parents, since you are independent for FAFSA purposes), then yes, it must be reported as “money received” on line 45.j.

11

If they gift under $100,000 / year, I do not need to report this to IRS

12

You would probably be required to complete verification by the school to show how you and your husband live on $9500 a year.

13

No…but you MUST report it on the FAFSA.

Simply put…your earnings for,two of you…$9500. The college will,absolutely want to know how you are paying your day to day expenses…all of the…for,two people on that income.

@BelknapPoint could you please explain gifts and taxes to,this poster?

To the OP…you are the recipient of the gift. I don’t believe you ever have any tax liability.

14

IRS rules and FAFSA rules: not same-same. But that does probably answer thumper1’s question about the $100,000 language that OP deleted from the first post.

15

Reporting Requirements
You must file Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, if, during the current tax year, you treat the receipt of money or other property above certain amounts as a foreign gift or bequest. Include on Form 3520:
Gifts or bequests valued at more than $100,000 from a nonresident alien individual or foreign estate (including foreign persons related to that nonresident alien individual or foreign estate);

16

Thank you. I see now.

17

Maybe your parents could lend you $4,000 per month (and later after your last FAFSA is filed, forgive up to $99,999 per year of the debt).

18

How should I say my parents lend me 4000 a month and do I have to send my parents debt every month after I graduate?

19

You would need to draw up a formal loan agreement including interest charged for the loan. Both you and your parents would need to sign this.

20

Than I may not need to put $4,000 on quesiont 45J since it is a debt, not supporting ?