How would I categorize income from boyfriend overseas?

Question

My fiance currently lives in the UK but writes for an American-based website and makes so much per month. When it's time for payouts, he has them direct all of it to me via Paypal. How would I claim this income - is it technically a gift? Nearly all of it is being put back in savings, mostly for when he immigrates (we're in the process of obtaining a fiance visa currently).

Answer 1

I dont know

doesn't sound legit to me...

Answer 2

if you receive it as income then you'll need to pay tax on it.

I'd suggest that he keep it in his own PayPal account until he's ready to marry into your country's laws.

So while it's a gift you're going to be liable for the income if you withdraw it.

Oh you are in the US right ? Maybe you need to be very careful with receiving that !

Answer 3

Sounds like he's evading UK taxes on the amount - not smart.

Answer 4

I dont know if paypal reports it. They are an intermediary. They employer should be reporting it to him on a W2 or 1099 at the end of the year.

Below is a link to the IRS website dealing with foreign persons earning US money.

Answer 5

loose change/if there's no w2 use what UK has.right?is it taxible?

Answer 6

There may not be a clear answer to your question based on the information you have provided.  The first issue that I would address if you were my client is how or will paypal report this money to the IRS.  If they are reporting this as income and using your SS number you are going to be liable for US income tax.  From the point of view of the IRS you and your fiance are engaged in a business venture which is being reported in your name therefore you report it on your return.  If paypal is not reporting the income to the IRS you could make the argument that this nice man in the UK is sending you a gift.  You also may have an issue as to what name and SS is on the savings account.  If that is yours the interest is certainly reportable as income.  If you are talking about a great deal of money it would be wise to sit down with a tax professional and review any options that you may have.

Answer 7

It's technically a gift since you didn't earn anything and you're not on the company payroll. He should be the one claiming the income in the U.K.