How to send money back home (to the US)

Yes, you read it correctly. I'm from the US but am working in Poland. My bank account and all my bills are in the US so I need to send some of the money I earn here In Poland back to the US --- what's the best way? I guess I know of Western Union but does it run very expensive? What other methods are there?

Thanks for all your help!

There are a few ways I know of...each with pros and cons.

1. If you have a bank account in the USA and here (or access to someone who does) you can just do a bank transfer (called a wire transfer in the USA). You will need to get your account number, SWIFT code and name, address etc in the USA all gathered in order to send it. Your US bank should be able to give you the codes etc but they may not have experience with this as it is not so common there so just ask for someone else if they act like you are speaking Chinese. There is usually a flat fee to send that can vary from 10-50usd from what I have seen depending on bank. Also...if you send large sums repeatedly the IRS may ask what's up so if it is income you are not declaring in the USA beware...Uncle Sam says you pay taxes no matter where you earn. This method can take several days to a week to end up in the account...possibly longer but it is rare.

2. Western Union as you mentioned is easy for the infrequent sending of cash. Bad thing is they take nearly 10% depending on where and how much you send. It is fast...often a few hours or at least the same day availability. You would also need someone to collect it and either pay the bills or deposit to your account.

3. A US based PayPal account is another option if you are able to have money sent to the account (ie people can pay you into the PayPal account online). You then just move the money from your PayPal to your bank account (free and takes a few days) and voila.

If you don't use online banking I highly recommend you do. It will allow you to pay the bills in a few minutes from your computer.

I agree. When I lived in Denmark, this was the easiest way to get money back home. My bank charged me $10 per transaction and I did not get beat up on any currency exchange fees. The fee was higher if I needed the money quicker, but in normal events, the money was in my US bank account within 3 business days.

If your bank does not have a SWIFT number (my bank did not as it was a very small one), they will use an intermediary partner's (mine had the Bank of NY as their partner) so you won't have any issues.

Sometimes for international transfers, your US account will need to be 10 digits. My account had 9, so they made me add a zero to the account number.

Call your bank and they will help you out. It's easy.


That's kind of correct too. In my normal life, I am a tax accountant here in NJ. As a US citizen, you have to pay tax on your worldwide income. You probably already know this, but contact the US Embassy in Poland as soon as you can. They have the average exchange rate you will need to convert your Polish income into USD (they may have it on their web page) when you file your 2007 tax return. You don't have to file by 15 April either. Being out of the county, you have until 15 June.

However, the IRS won't really make too much noise about you transferring income back to the US because you have to file an additional form with your taxes. You have to file a form TD F 90-22.1 separately disclosing that you have a foreign bank account and letting the IRS know the account number (You also have to file schedule B with your 1040 that contains the check box stating that you have a foreign bank account).

Don't know who actually gets it though. I sent all my tax returns in certified mail with a return receipt requested. The receipt for the TD F 90-22.1 never ever came back.

If you have any questions when it comes down to filing your tax return, give me a shout. I've been through it myself before...

Cheers,

Kman

Kman,

I have a question about tax liability if you don't mind. If you transfer money into your US based account as a favor for someone (ie to get their money from EU to USA so they can purchase something) are you tax liable at all since that money enters your account?

It seems since it is not income or earnings and you are simply a transport medium that you wouldn't be. I would be able to produce a document from them saying it was theirs...in addition I am aware I would be liable for any interest earned as a result of the funds being there but am more concerned with the principle amount.

Just trying to be nice to someone but don't want to get into a hassle.

Thanks

Hi Jones

In your example, you aren't liable for any taxes whatsoever. No issues there. Yes you are liable for the interest that is earned int he account, but that is all.

It's just as if you were flying to the US and someone gave you money to buy them something to bring back with you.

My only issue would be if you were doing it routinely (a couple of times a month). Then someone might take a look at it and say you were doing some type of business transaction. Naturally, you still aren't liable for any tax, but you have to go through the hassle of proving it.

Cheers,

Kman

Hi -- thanks guys. I'm not making a boat load of money so no worries with the IRS. Also, I do my bills online -- BUT I still need to have money in my bank account to process those bills. haha. That's why I need to send the money I make over to the US.

Thanks!!!!!! I'll probably do the bank transfer as I bank with Citibank so that shouldn't be too difficult to find a branch here -- let's hope.

Open a Citibank account here and even though it is another division from the US you may be able to transfer for free or cheaper since it is the same company.

Here is a list:

Warszawa
00-950
ul. Traugutta 7/9
tel. (022) 692 51 35
fax (022) 826 21 32

Warszawa
ul. Czerniowiecka 9
tel. (022) 543 00 80
fax (022) 543 00 95

Warszawa
01-258
ul. Wolska 167
tel. (022) 690 10 30
fax (022) 837 07 84

Warszawa
04-175
ul. Ostrobramska 75a
tel. (022) 613 88 55
fax (022) 613 95 95

ok --- thanks -- i'll def. check into those locations to see what's closest to me (and which one may have saturday morning hours).

thanks !!

only if it comes back stateside. personally i'd leave it in Eu and get a CC and use it in the states instead.


see above.. you can have the money sitting offshore and just 'charge' your bills to that account.

You're wrong plk. If you are a US citizen, you pay tax on your worldwide income, no matter where the money is located. US has a foreign earned income exclusion. If you lived outside the US for the full year and spent under 30 days in the US, you still have to file a tax return, but you are able to exclude USD 85,700 from your income. If you earn more than that amount, you are subject to US tax on the difference. However, you will then get a credit for taxes paid to the other jurisdiction (i.e. Poland). Normally, US citizens living in Europe won't pay US taxes because the European tax rates are higher than in the US.

But again, that rule goes for US citizens and green card holders only.

Whether you pay the bills out of an account located in Europe or the US doesn't matter.

The US taxing authorities will tax a US citizen on money they earn wherever they live. The money you transfer back is basically after-tax and has no income tax consequences.

What if I sell some properties that I had it before I become US citizen.
How I can transfer money and do I have to pay tax.

only if you're crazy enough to declare that money. i would not and partly why i think i'll stay non-citizen. keeps the NSA nazis out of my biz.