I belong to an organization - ACA (American Citizens Abroad) and received a news letter from them explaining about some provisions with the BIG BEAUTIFUL BILL, currently under going review of the US Senate.  IAW the letter, says that in the bill is a provision to tax at 3% any funds sent from the US to a foreign country, even if one is sending money from their US bank to themselves or their family or someone else that is overseas.  I do no know all the facts of course but it says that if an American Citizen sends money to himself overseas, it will be taxed at 3% but that after the year, one can claim a tax credit on that amount but of course it would be received a year later - a total ripoff IMHO.  I was wondering about what if we just withdrew money using a credit card from our US bank instead of using wire transfers.  Would the govt then try to force us to report those funds to so that they could then tax it?  would they have any way to know since we would just send the money for the cc back to our US bank.  Also if this ATM withdrawal method were to be used, then could the US govt tax their tourists using ATM withdrawals while on vacation overseas?  Anyway, I will continue to receive information on this have ACA to advise my distaste for an additional possible tax on own money especially!  we already are required to do FATCA/form 7, IRS reporting and this seems just an additional slam on expats and US citizen possibly travelling or living overseas.  I guess VAT and other sales tax is paid by citizens when ordering merchandise from foreign countries but this is entirely different IMHO.  I will provide any additional info on this subject.

Oh that's really bad news if it's always charged and you have to claim credit later.

Consider all the people importing 65K monthly for their retirement extensions. It won't be 65K anymore.

I don't personally use the income method.

I was talking more about mechanics than anything.

However, consider people having 65K on automatic for their retirement extensions.

Many will probably be caught off guard accidentally sending less for a month or more not knowing about the change.

That will ruin their next year's extension application.

In any case this tax if passed on U.S. citizen expats is very bad for expats.

Clearly the maga regime cares nothing about expat voters.

I asked Perplexity AI and it stated that the proposed tax is non-US citizens only.

 

”From what I’ve found, the current tax bill does propose a tax on international money transfers, but it specifically targets non-U.S. citizens. The rate mentioned is around 3.5% to 5%. There’s no indication that it affects U.S. citizens transferring money overseas, even to themselves. The focus seems to be on remittances from non-citizens.”

Just now, TimBKK said:

I asked Perplexity AI and it stated that the proposed tax is non-US citizens only.

 

”From what I’ve found, the current tax bill does propose a tax on international money transfers, but it specifically targets non-U.S. citizens. The rate mentioned is around 3.5% to 5%. There’s no indication that it affects U.S. citizens transferring money overseas, even to themselves. The focus seems to be on remittances from non-citizens.”

That is NOT the point!

The point is that although US citizens are exempt we need to know whether that exemption is in effect at time of transfers OR if all are taxed anyway and U.S. citizens can then claim back the tax when filing their taxes.

 

1 hour ago, Presnock said:

the letter, says that in the bill is a provision to tax at 3% any funds sent from the US to a foreign country, even if one is sending money from their US bank to themselves or their family or someone else that is overseas.  

So I guess that includes any corporate pension funds (other than social security) sent out of the US to the recipient would also be taxed 3%?

15 hours ago, Presnock said:

I belong to an organization - ACA (American Citizens Abroad) and received a news letter from them explaining about some provisions with the BIG BEAUTIFUL BILL, currently under going review of the US Senate.  IAW the letter, says that in the bill is a provision to tax at 3% any funds sent from the US to a foreign country, even if one is sending money from their US bank to themselves or their family or someone else that is overseas.  I do no know all the facts of course but it says that if an American Citizen sends money to himself overseas, it will be taxed at 3% but that after the year, one can claim a tax credit on that amount but of course it would be received a year later - a total ripoff IMHO.  I was wondering about what if we just withdrew money using a credit card from our US bank instead of using wire transfers.  Would the govt then try to force us to report those funds to so that they could then tax it?  would they have any way to know since we would just send the money for the cc back to our US bank.  Also if this ATM withdrawal method were to be used, then could the US govt tax their tourists using ATM withdrawals while on vacation overseas?  Anyway, I will continue to receive information on this have ACA to advise my distaste for an additional possible tax on own money especially!  we already are required to do FATCA/form 7, IRS reporting and this seems just an additional slam on expats and US citizen possibly travelling or living overseas.  I guess VAT and other sales tax is paid by citizens when ordering merchandise from foreign countries but this is entirely different IMHO.  I will provide any additional info on this subject.

from what I read from the ACA which is working with members of the Congress on this bill, the indication to me is who will collect the tax?  it seems inprobable that a foreign bank would collect taxes for the US when funds are remitted from the US to that foreign country.  I therefore think that the US bank sending the funds to the foreign country would collect the tax.  Then the ACA explained that if the person sending the funds would have to prove US citizenship and THEN could us a tax credit the following year when doing their taxes.  As for those pensioners having the money sent directly to their foreign account, that is not clear either but it would seem to me that if the US govt is sending the pension or SS funds then they should realize that the person is a US citizen already but SS can also be earned and paid to foreign citizens so...  Also, would WISE be required to withold that 3% too?  A lot is still unclear to me but ACA is filing motions about the dropping of this tax altogether and passing complaints of expats too to the Congress as the tax system has already caused many foreign banks and US banks to close accounts due to the extra work needed to satisfy the US tax people!  Anyway as I receive more on this from ACA, I will pass it on.

link for the Big Beautiful Bill and remittance of funds sent to foreign countries

https://taxfoundation.org/blog/us-remittances-tax-big-beautiful-bill/