This conversation discusses the implications of the One Big Beautiful Bill Act, which introduces a 1% excise tax on remittance transfers starting January 1, 2026. The goal is to raise approximately $10 billion over the next decade.

We explain how this tax will affect American families sending money abroad, the collection process, and planning strategies to mitigate the impact of this new tax.

We emphasize the importance of understanding the tax's application and exploring alternative methods for sending money to avoid additional fees. 

We have a new checklist to help you plan for the new tax and hopefully avoid it.

Takeaways  

• A 1% tax on international money transfers will take effect in 2026.   
• The tax applies to all remittance transfers by US citizens,  residents, and foreign nationals on work visas – (Everyone)
• Providers will collect the tax on behalf of the IRS.
• Planning for the tax is essential to managing costs effectively. 
• Some transfers may be exempt, based on the institutions used or the methodology.
• A checklist is available to help plan for the new tax.

Grab the Remittance Checklist here

Chapters

• 00:00 Introduction to the New Tax on Remittances
• 02:45 Understanding the Impact of the Tax
• 05:56 Planning for the New Remittance Tax

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Grab  "the Comprehensive Checklist for Foreign Nationals on Work Visas Leaving the U.S." currently on sale, to celebrate our 50th episode.

If you'd like to work with us on your finances or taxes, check out the process 


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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.