Bank Account/Tax Question

Quick question.  I haven't been working so I haven't been making any money.  However, BF and I have been using my account as a savings account from his pay.  We've had a couple months of his pay put into my account and it just sits there until we need it, then I transfer it to his account or pay for the bill/rent/whatever through my account.

My question is, does having this money in an account with my name have anything to do with taxes?  Am I going to have to declare it or anything? 

I hadn't thought about it until recently, but I vaguely remember seeing something about accounts that have more than $10,000 in them?  I don't think we're there yet, and we plan to buy a car anyway so we might not even get there, but just curious.

Thanks!

You are receiving gifts from an NRA. If these exceed $100,000 per year you'd file a 3520. If you make gifts to him larger than $13,000 (in any calendar year), which it sounds like you might well be doing once you total up the numbers, you'd be using some of your lifetime gift tax exclusion and would need to file a gift tax return for 2011 even though there is zero gift tax payable.
 
You may in any case be required an FBAR for 2011.

Ok great, thanks!  Would it be a good idea to just get a joint account to avoid this whole "gifts" thing then?  We've been meaning to do that anyway, but haven't gotten around to it.  Would I still need to do an FBAR for that as well?  Just need to get my ducks in a row for this! 

Thanks again!

Would it be a good idea to just get a joint account to avoid this whole "gifts" thing then?  Would I still need to do an FBAR for that as well? 

Yes, if the joint account had $10,000 in it any point in the year, you'll need to file an FBAR report.

Your partner might be better off opening his own savings account, thus avoiding the FBAR requirements. If you have an interest in the account though, or can sign on it, then you'll still need the FBAR.

You are not married. The completed "gifts" occur for gift tax purposes when you gift him more than $13,000 in any year. If he takes money out from the joint account this is a completed gift for gift tax purposes.

He may also be making you gifts totalling more than $100,000 in which case you have an income tax filing obligation.

The FBAR is not a tax return. It is a Treasury form which is required if you have financial or signature interest in an account. Whether or not you have financial interest is a question to be addressed under local law if your name is not on the account.

Wow, so even if we have a joint account with both our names on it, it's still "gifts" just because we're not married? What if we were both contributing money to it (when someone is finally kind enough to hire me), would this still be the case?  I'd never be able to keep track of that. It's not like your name is written on it when it goes in! 

Can you do the FBAR at any time of the year or is it generally done around tax time? I'll be doing that either way. However, I'm not sure I'll be bothering about this gifts thing. All because we're not married! What if we never get married? What then?

We're well, well, well under the threshold for the money he's been "gifting" to me and I'm just going to pay for everything so I don't "gift" back anything to him.  We're just going to get him another account and have mine go back to being empty until I get a job, and avoid it all together. 

Thanks so much for the help!  This is always so enlightening! 

The deadline for the FBAR is 30 June each year. No extensions are available. Unlike a tax return, this is the date it must be received, not just sent, although it can now be filed online (e-filing) although not with the tax return.

It is also necessary to tick the right box on Schedule B of the tax return too. Very soon they'll be a FATCA reporting requirement which will mean an extra form filed with the tax return too!

Good luck

Luckily there is nothing in these facts that suggests the "FATCA reporting requirement", properly known as "Form 8938" is relevant because NoseOverTail does not have $50,000 of financial assets.

What remains important is gift tax reporting - whether you are married or not - simply because your partner is an NRA.  It sounds as if you need some professional advice to be certain you're filling out the right forms...the penalties for missing these are not worth thinking about.

Luckily there is nothing in these facts that suggests the "FATCA reporting requirement", properly known as "Form 8938" is relevant because NoseOverTail does not have $50,000 of financial assets.

The 8938 may or may not be applicable to the O/P this year or in future years. However, it may well be applicable to others, or to the O/P in future years. My point wasn't to give specific advice to the O/P; as you correctly point out, without knowing all the facts, this cannot be done. Either way, a public forum is hardly the most appropriate place to discuss any more than general questions, and should never be relied on in specific cases without further research and/or professional advise.

Yeah, looking over the bank statements, I'm 99% certain we're under the threshold for me gifting to him, which is good since we're too broke to be paying tax on something like this, but I think I'll be contacting my parents' accountant, just to be safe.

It just makes me wonder how many people in our situation are completely ignorant to this.  I hate to think what could have happened if I hadn't thought to ask!

Thanks again!