Repatriating money to USA

[plank]

Hi there.

I'm an American who has lived abroad for the last 12 years. I have about $80000 saved up from working. Just sitting in a bank account, not from investments.

My wife and I want to move back to the states in the next few years. Do we have to follow any special procedures about bringing the money with us? I've always filed my taxes properly using the foreign tax exemption. Will I owe any taxes if I try to transfer the money when we move? If so, is there a way to do it tax free with the luxury of a few years of planning?

 No illegal or questionable suggestions please.

[maizefolk]

As far as I know there shouldn't be any tax implications of bringing your money back into the US. You've already "paid tax" on that money, even if, with the foreign tax exemption, that tax ended up be $0.

As far as logistics, just avoid bringing in a suitcase full of cash (>=$10,000) or gold coins. I've wired money from my own bank account China to the USA in the past. No problems/complications on the US end. (Chinese regulations are a pain, but I'm assuming you're coming from a different country.)

[Ursus Major]

As far as I know there shouldn't be any tax implications of bringing your money back into the US. You've already "paid tax" on that money, even if, with the foreign tax exemption, that tax ended up be $0.

As far as logistics, just avoid bringing in a suitcase full of cash (>=$10,000) or gold coins. I've wired money from my own bank account China to the USA in the past. No problems/complications on the US end. (Chinese regulations are a pain, but I'm assuming you're coming from a different country.)

There might be a tax consequence, if you hold your overseas money in a foreign currency.  When you convert the foreign currency into USD you might encounter a currency gain, even if you've already paid income tax.

Example: You have 1000 Euro in a European brokerage account from paid dividends. The average exchange rate floor that money was 1.05 USD/EUR and you're already paid taxes on 1050 USD of dividends. You repatriate the money, but at that time the exchange rate is 1.1 USD/EUR, so you get 1100 USD. That extra $50 is a currency gain.

Luckily if your gains are less than $200 (presumably per tax year), it isn't taxable.

[Drifterrider]

Hi there.

I'm an American who has lived abroad for the last 12 years. I have about $80000 saved up from working. Just sitting in a bank account, not from investments.

My wife and I want to move back to the states in the next few years. Do we have to follow any special procedures about bringing the money with us? I've always filed my taxes properly using the foreign tax exemption. Will I owe any taxes if I try to transfer the money when we move? If so, is there a way to do it tax free with the luxury of a few years of planning?

 No illegal or questionable suggestions please.

You just have to declare it on your customs form (even if it is a check).  It isn't illegal to bring a lot of money in; but it is illegal not to declare it (drug trafficking, etc).  You could also wire it to a bank in the US. 

[Mr Mark]

Hi there.

I'm an American who has lived abroad for the last 12 years. I have about $80000 saved up from working. Just sitting in a bank account, not from investments.

My wife and I want to move back to the states in the next few years. Do we have to follow any special procedures about bringing the money with us? I've always filed my taxes properly using the foreign tax exemption. Will I owe any taxes if I try to transfer the money when we move? If so, is there a way to do it tax free with the luxury of a few years of planning?

 No illegal or questionable suggestions please.

You just have to declare it on your customs form (even if it is a check).  It isn't illegal to bring a lot of money in; but it is illegal not to declare it (drug trafficking, etc).  You could also wire it to a bank in the US.

Yeah, wire transfers over $10k get reported to the Feds by the bank automatically. Once I was coming into US and to make 100% sure some cash got here when I needed it I just brought a load of US$ in cash. I declared it to customs on the form and they directed me to a side table. The guy asked what I had, took my passport and went off to a computer. A few key strokes later, passport back and a 'Welcome to the United States'. No problems. He didn't even check what was in the bags.

Just pay your taxes and don't get onto any 'bad boy' lists I guess!  ;-)

[Drifterrider]

I'd like to have a whole lot of cash to carry around but I took my change bin to the bank for their automated counting machine.  $143.00