Legal Question in Tax Law in Massachusetts

I assume this is a gift or a loan. If a loan document it. If a gift, get an email confirming it is a gift.

If your parents are not US Citizens nor are US Residents (Green Card), then there is no tax whatsoever.

If your parents are US citizens, they need to file a gift tax return with their tax returns for next year. If they are not US citizens or have a Green Card as a US resident, they do not need to file such a return.

US exempts $13,000 per parent for annual gifts and allows tax credits up to $1 Million in gifts per person.

None of this applies to non-US residents or Citizens.

If the payment is for services whether rendered in the US or not and you are a US Resident (temporary or not) allowed to work in the US, then the payment is subject to US income tax.

I would assume the funds are a gift and your parents are not US Citizens nor US Residents for tax purposes, so there is no tax on the $200K.

If you have any more questions on this matter, please feel free to call me.