What happens when you declare money at customs (2024)

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When you declare over $10,000 at U.S. Customs, you’ll need to file a FinCEN Form 105 prior to entering or leaving the country.

Is your credit card going to be accepted by overseas merchants? Can you make money with international contract jobs and bring the cash back into the United States? These are just two of the many questions you might ask related to dealing with money when you’re traveling in and out of the country.

Before you decide how to handle financial matters when you travel, make sure you know what happens when you declare money at customs.

Is there a maximum amount of money you can bring into the United States?

When you’re traveling to and from the United States, there’s actually not an official limit on how much of your money you can carry with you. Note that cash in this case includes actual cash: bills, coins and instruments that are deemed equivalent to currency like checks and money orders. It also refers to cash in the currency of other nations.

While there aren’t rules on how much money you can carry in or out of the United States, there are requirements for reporting the cash. If you’re carrying currency equivalent to $10,000 or more, you have to report the money to customs.

That limit isn’t per person if you’re with your family or another organized group, either. If you’re traveling together with two other people and you’re all carrying $5,000, that means your total is $15,000. Since the total is above the threshold, your group would have to report the money to customs.

What counts as cash, exactly?

Okay, but what’s a “cash equivalent?” Can’t anything be converted to cash if you sell it, and does that make your diamond necklace a cash equivalent you need to report?

While you might need to report other types of items and valuables to customs under different rules, cash equivalents are limited to currencies and financial vehicles that are deemed equivalent to currency. According to U.S. Customs and Border Protection, that includes:

• Money in U.S. dollars and coins
• Coins from other nations
• Paper currency from other nations
• Gold coins
• Traveler’s checks
• Checks or money orders that you can cash, including those that are made out to someone else but endorsed to be cashed by you
• Certain types of stocks or securities

How to declare money at U.S. Customs

Before you attempt to carry more than $10,000 into or out of the United States, you’ll need to complete a Form 6059B and a FinCEN Form 105. Those are the forms that let you appropriately declare the currency to customs.

For convenience, you can complete the FinCen Form 105 online via a computer or mobile device. The form requires you to answer some questions and identify yourself and the currency in question. It also asks if you’re a professional money transporter carrying the money for someone else. Money reported via FinCEN Form 105 is reported to the IRS to help cut down on money laundering.

Typically, if you’re carrying money for legitimate, legal reasons and you truthfully complete Form 6059B and FinCEN Form 105 before or when you arrive at customs, you should be able to get through with your money in short order.

What happens if you declare more than $10,000?

So, what happens if you declare more than $10,000? Let’s start with what doesn’t happen. Some are hesitant to declare money because they falsely believe that the government taxes the money or charges fees upon arrival or departure. However, it’s important to note that this is untrue and failure to report can lead to penalties.

Potential penalties to look out for

Not reporting cash or cash equivalents over the amount of $10,000 can come with serious consequences. U.S. Customs and Border Protection notes that consequences can include:

• Forfeiture of the money you’re carrying—meaning they take the money at customs and you don’t get it back
• Civil penalties such as fines
• Criminal penalties—including prison time—if you’re convicted of a crime related to illegally transporting money

How to declare money in foreign countries

You don’t just have to declare money when you’re carrying it into and out of the United States. Other countries have declaration requirements and rules too, so always make sure you know the rules of all countries you plan to travel through. Some forms you might need when traveling with large amounts of money include:

• The link to declare cash coming into or out of England, which you can do up to 72 hours beforehand.
• The Australian Cross-Border Movement – Physical Currency Form, which is required when carrying cash valued at $10,000 or more into or out of Australia.
• Information about verbally or digitally reporting cash when leaving or entering Canada.
• The Mexican Extraction of Cash Amounts or Documents Receivable form for declaring cash when entering or leaving with the equivalent of $10,000 USD.

To find similar forms for other nations you might be traveling to, search online for cash declaration requirements for the country you’re traveling to or from. Doing a bit of research before you travel or go through customs can save you a lot of time and hassle.

Prepare for travel in advance

Sometimes, you can’t get around carrying cash in or out of a country. For example, if you sold a large property and the transfer fees would be exorbitant, it might be cheaper to fly the money into the United States yourself.

But when you’re planning a vacation or business trip abroad, you probably don’t need to carry $10,000 or more in cash with you. After all, carrying that much negotiable currency puts you at risk for getting robbed. And, if you simply misplace a good chunk of what you’re carrying, you could also be out a lot of money.

Instead of carrying cash, consider funding your travel with a credit card. You don’t have to declare credit cards, and if your credit is good enough, you might be able to get a travel rewards credit card with no foreign transaction fees. That means you can pay for goods and services in international locations while building points that let you cover travel expenses or splurge on free dining experiences.

Start planning for international travel as far in advance as possible. That way, you can check your credit and see if you might qualify for these types of credit cards. If your credit is lackluster, consider looking into services from CreditRepair.com, which are designed to help you take action to potentially positively impact your credit.

Note: The information provided on CreditRepair.com does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only.

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