Posts by Bryan Scott6

Paul Hernandez6 said:Bank deposits and savings accounts are state-guaranteed up to $133, whereas mutual funds don't offer any such protection

True, but let's be real—no money market fund has ever actually gone negative, let alone completely collapsed. On the flip side, we've seen banks fail along with everyone's savings... people end up just waiting for those guaranteed amounts to be paid out, minus interest—which is still a loss in my book. Just look at what happened back with Bank of Osijek and companies like that...

Steven Reed said:The bank won't just give you a call if they can't make sense of your transfer reason—they’ll demand a signed statement confirming the source of funds. And no, this isn't some arbitrary rule cooked up by the branch; it’s straight out of the federal banking regulations 😉

Now that you all seem to have sorted things out, I'll weigh in 🤣

Do you mean the "reason" or the "purpose"? Purpose would be more like: hair removal, makeup, a new car, grabbing coffee with friends, etc.—if we're talking about a sailor's wife 😉

I still think people are really just asking whether they'll get taxed... looks like he dodged the actual question entirely 😂

Kimberly Nguyen said:I honestly think the two of us are talking past each other here... the bank doesn't give a damn whether you actually pay your taxes or how much you owe the IRS => that's a problem for you and the tax authorities to sort out... I'm not even addressing that part... The reality is, the bank has to follow federal law. They are strictly required to file specific reports with the Federal Reserve regarding the nature of incoming transfers—like if it's rental income hitting a foreign currency account, or real estate sales being deposited into a standard domestic checking account, etc. Basically, they need the data. Now, what a client chooses to claim or sign on a declaration regarding the truthfulness of those funds? That’s between the client and the government. If the bank can satisfy its legal obligations based on that signed statement, they'll process it. If they can't, they'll demand more paperwork or simply kick the funds back to the sender...

Okay, now we're on the same page. I was just giving the OP a heads-up about potential tax implications if they open a foreign currency account that, say, looks a bit suspicious to someone at Citibank.

Kimberly Nguyen said:Who on earth said the bank calls the IRS? Give me a break. A bank reaches out to the client when they can't make sense of a transaction code—that’s literally their job description... They also have to call if there’s anything even remotely suspicious regarding federal anti-money laundering laws. If the customer doesn't respond or if the client specifically asks them to, they just send the money back to the sender. It's not rocket science.

Now, look, sailors get paid based on their Contract Corp, and that's perfectly fine... As for how expats transfer their cash, that's their business. Most of them either hold US citizenship or are officially registered as living abroad, so under US law, they are fully entitled to move funds they earned overseas.

Look, I'm not arguing about whether the income hitting the bank is legal—I'm talking about whether it's taxable. There aren't any laws preventing the taxation of our citizens living abroad or working on ships... in that regard, they aren't any different from citizens living right here in the States who receive transfers from, say, a roommate or a friend via wire

Kimberly Nguyen said:A bank can't just make up some arbitrary reason for a transfer just to keep a customer happy... They have a legal obligation, as I recall, to report the actual basis for these incoming transfers to the Federal Reserve. It’s absolutely not in their interest to skirt the law or dodge their regulatory duties just to play nice with a client... regardless of whether we're talking about $100, $2,000, or significantly more.

Just because "shady business" might be considered standard practice by some people here doesn't mean it's acceptable anywhere else in the world... If I'm sending money to someone to cover a deposit or payment for a summer rental or a ski trip—whatever it is—why on earth would I lie about the purpose of the transfer? And why would I even sit there worrying about whether or not that person ends up paying taxes on it?

It's different for merchant marines; they have specific contracts governing how they receive international wires. But for people working abroad, everyone has their own way of doing things...

Look, those contracts and expat methods don't change much for banks when it comes to reporting foreign currency inflows to the IRS. What I'm getting at is this: if banks were actually calling out customers and notifying the tax authorities en masse, no seafarer or expat would ever send money back to the States into a domestic account. As far as I know, oversight happens through currency inspections—which probably have much bigger fish to fry than a few hundred bucks sent to a roommate, or at least I hope that's the case... while the big corporate sharks are busy stealing billions.

Kimberly Nguyen said:I’m honestly not sure which response is going to make the cut here, but you really have to tread carefully with this kind of thing. When someone transfers funds, there is a mandatory payment reference required—it's non-negotiable—and you can actually glean a lot of the transaction's intent just from that detail. That said, if things look even slightly off, the banks will almost certainly give you a call to verify everything.

Well, that payment description can technically be anything you want it to be. From what I've gathered in other threads, unless it's a massive transfer, the bank isn't going to waste their time breathing down your neck—it's in their best interest to keep the client happy. For instance, if someone sends $2,000 and lists it as a "gift," it’s just not enough to trigger any real headaches. Besides, it's the individual's responsibility to report their own taxes. If banks started policing every little thing like that, they wouldn't have any overseas workers or expats left as clients...

Kimberly Nguyen said:Let me go over some of this again to make sure we're all on the same page...

When you're dealing with banks, you've got two main setups:
- A standard USD checking account and a USD savings account
- A foreign currency checking account and a foreign currency savings account

With a standard USD checking account, you can only deposit US dollars... though honestly, anyone can walk in and drop cash into it if they want to. Checking account
Now, with a foreign currency checking account, you can either receive foreign funds directly or buy foreign currency, but that’s strictly limited—only the account owner or an authorized representative can pull those strings... Depositing funds into a foreign currency account in the US

There aren't any taxes applied to these specific types of accounts.

However, when it comes to the USD Savings account and the foreign currency savings account, taxes definitely apply, and you are legally obligated to report that income on your tax returns.

Here's the kicker: if someone from abroad sends money to your foreign currency checking account—say, for a short-term rental or an Airbnb booking—there is a massive chance the bank is going to flag it. You'll get a call from someone at JPMorgan Chase asking what the hell the purpose of the transfer is. At that point, you'll be forced to either open a proper foreign currency savings account or they'll just convert the money into dollars and dump it into your USD savings account (assuming you don't already have one set up).

It looks like JPMorgan Chase doesn't actually offer a foreign currency checking account—at least according to their website. They have standard checking, plus USD and foreign currency accounts. But that third one is just labeled as a foreign currency account, not a checking account. It doesn't make much sense... I guess since you don't really need regular direct deposits for it.

Robin Walker said:So, you can deposit dollars directly into the foreign currency account, and they'll just get converted into euros? Basically, most deposits will be coming in as either dollars or euros.

I've been keeping an eye on this stock. It’s definitely one to watch. Robin Walker says:
I have no idea what kind of attachments those are.

I mostly just need it for processing reservation payments for my rental properties. It’s usually just standard USD or Euro transactions, nothing massive.

If you open a checking account at JPMorgan Chase, you get a Visa debit card right away. There are no monthly maintenance fees, which is a nice perk. You also get one free detailed transaction statement sent straight to your email every month. Plus, they don't charge you anything to issue the card or the PIN. Simple and easy.

Can I deposit foreign currencies into my checking account? Also, can I check my balance online? It’s pretty crucial for me so I can confirm bookings for people right away. And can I use that card to pay for things online?
The other day I tried to top up my balance using my checking account, but the lady at the bank told me I couldn't use that specific card for online shopping. Does the same thing apply to a JPMorgan Chase Visa, or am I good to go for online purchases? Using PayPal is my main priority here.

At Goldman Sachs, they charge you a fee just for having a checking account. $2.00 Monthly, that’s about $600 a month.

And Goldman Sachs isn't exactly right next door, either.

JPMorgan Chase offers a foreign currency account with a 7.5% annual interest rate. They deduct the fees semi-annually on June 30th and December 31st. You also get an Intel card that works perfectly for all your online shopping.

Goldman Sachs foreign currency accounts. $6.75 Setting up my first card and PIN, plus managing my foreign currency account, only costs me about $0.60 a month.

I can’t make a move until I know exactly what I’m getting. If JPMorgan Chase lets me open a checking account for free—one where I can deposit both dollars and foreign currency, check my balance online, and get a debit card for web purchases—then I'm all in. But if that’s not the deal, I think I'll just stick with a standard Goldman Sachs foreign currency account instead.

By the way, does anyone know if there's any interest paid on checking accounts? I think I read somewhere that you actually earn interest on the money you deposit.

If you open one of those foreign currency accounts, you're probably on the hook for taxes on that income—at least, that's how I interpreted some discussions on other threads. I think JPMorgan Chase doesn't even offer that specific type of account anymore...