The new 1% U.S. remittance tax<\/strong><\/h2>\n\n\n\nStarting Jan. 1, 2026, the U.S. charges a 1% federal excise tax on some money transfers sent abroad. The tax was created under the One Big Beautiful Bill Act<\/a>, which was signed into law in July 2025.<\/p>\n\n\n\n<\/div>\n\n\n\nWho pays the tax<\/strong><\/h2>\n\n\n\nThe tax applies when you pay for a transfer with cash, a money order, a cashier\u2019s check or a similar paper payment. This usually happens at walk-in remittance centers.<\/p>\n\n\n\n
For example, if you pay $1,000 in cash to send money to the Philippines, you pay an extra $10 in tax. The remittance company collects the tax when you send.<\/p>\n\n\n\n![\"Person](\"https:\/\/www.smileswallet.com\/us\/wp-content\/uploads\/sites\/12\/2026\/10\/istockphoto-992078756-612x612-1.jpg\")
Photo credit: iStock<\/a><\/figcaption><\/figure>\n\n\n\n<\/div>\n\n\n\nHow to avo<\/strong>id the extra 1%<\/h2>\n\n\n\nThe tax does not apply when you pay with:<\/p>\n\n\n\n
\n- Money from a U.S. bank account<\/li>\n\n\n\n
- A U.S.-issued debit or credit card<\/li>\n<\/ul>\n\n\n\n
This means most app-based transfers are not taxed. Sending through an app that you fund from your bank account or debit card helps you avoid the extra 1%.<\/p>\n\n\n\n
The IRS released proposed rules for the tax in April 2026. Final rules may add more details, so check for updates.<\/p>\n\n\n\n
<\/div>\n\n\n\nRemittances are not taxed in the Philippines<\/strong><\/h2>\n\n\n\nYour family in the Philippines does not pay income tax on the money you send. Money earned abroad by overseas Filipinos is generally not subject to Philippine income tax<\/a>, and sending it home does not change that.<\/p>\n\n\n\nYour family can receive your remittance in full. They may only need to show where the money came from if their bank asks.<\/p>\n\n\n\n![\"family](\"https:\/\/www.smileswallet.com\/us\/wp-content\/uploads\/sites\/12\/2026\/10\/istockphoto-1348000143-612x612-1.jpg\")
Photo credit: iStock<\/a><\/figcaption><\/figure>\n\n\n\n<\/div>\n\n\n\nLarge amounts may be reported<\/strong><\/h2>\n\n\n\nUnder the Philippines\u2019 Anti-Money Laundering Act, banks and other financial institutions must report cash transactions of more than 500,000 pesos in one banking day to the Anti-Money Laundering Council.<\/p>\n\n\n\n
A report does not mean anything is wrong. It is a standard check. Still, if you send large amounts, it helps to keep records that show where the money came from.<\/p>\n\n\n\n
<\/div>\n\n\n\nReporting Philippine bank accounts to the U.S.<\/strong><\/h2>\n\n\n\nIf you are a U.S. citizen or green card holder and you have a bank account in the Philippines, you may need to report it to the U.S. government.<\/p>\n\n\n\n
<\/div>\n\n\n\nWhen you need to report<\/strong><\/h2>\n\n\n\nYou must file a Report of Foreign Bank and Financial Accounts<\/a>, known as an FBAR, if the total balance of all your foreign accounts was more than $10,000 at any time during the year. This is true even if the balance went over $10,000 for just one day.<\/p>\n\n\n\nFor example, if you have a joint account with a parent in the Philippines and you deposit money that brings the balance above $10,000, you may need to file.<\/p>\n\n\n\n
You file the FBAR online with the Financial Crimes Enforcement Network using FinCEN Form 114. It is usually due April 15, with an automatic extension to Oct. 15.<\/p>\n\n\n\n
<\/div>\n\n\n\nWhy it matters<\/strong><\/h2>\n\n\n\nMissing an FBAR can lead to penalties of more than $10,000, even if the mistake was not on purpose. Keep receipts and records of money you hold or move for family members, and talk to a tax professional if you are not sure whether you need to file.<\/p>\n\n\n\n
<\/div>\n\n\n\nTips for sending money in 2026<\/strong><\/h2>\n\n\n\n\n- Pay with your bank account or debit card to avoid the 1% tax.<\/li>\n\n\n\n
- Keep your transfer receipts and records.<\/li>\n\n\n\n
- Check whether your foreign accounts need to be reported.<\/li>\n\n\n\n
- Use a licensed money transfer service.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
About Smiles Mobile Remittance<\/strong><\/h2>\n\n\n\n
Who pays the tax<\/strong><\/h2>\n\n\n\nThe tax applies when you pay for a transfer with cash, a money order, a cashier\u2019s check or a similar paper payment. This usually happens at walk-in remittance centers.<\/p>\n\n\n\n
For example, if you pay $1,000 in cash to send money to the Philippines, you pay an extra $10 in tax. The remittance company collects the tax when you send.<\/p>\n\n\n\nPhoto credit: iStock<\/a><\/figcaption><\/figure>\n\n\n\n<\/div>\n\n\n\nHow to avo<\/strong>id the extra 1%<\/h2>\n\n\n\nThe tax does not apply when you pay with:<\/p>\n\n\n\n
\n- Money from a U.S. bank account<\/li>\n\n\n\n
- A U.S.-issued debit or credit card<\/li>\n<\/ul>\n\n\n\n
This means most app-based transfers are not taxed. Sending through an app that you fund from your bank account or debit card helps you avoid the extra 1%.<\/p>\n\n\n\n
The IRS released proposed rules for the tax in April 2026. Final rules may add more details, so check for updates.<\/p>\n\n\n\n
<\/div>\n\n\n\nRemittances are not taxed in the Philippines<\/strong><\/h2>\n\n\n\nYour family in the Philippines does not pay income tax on the money you send. Money earned abroad by overseas Filipinos is generally not subject to Philippine income tax<\/a>, and sending it home does not change that.<\/p>\n\n\n\nYour family can receive your remittance in full. They may only need to show where the money came from if their bank asks.<\/p>\n\n\n\nPhoto credit: iStock<\/a><\/figcaption><\/figure>\n\n\n\n<\/div>\n\n\n\nLarge amounts may be reported<\/strong><\/h2>\n\n\n\nUnder the Philippines\u2019 Anti-Money Laundering Act, banks and other financial institutions must report cash transactions of more than 500,000 pesos in one banking day to the Anti-Money Laundering Council.<\/p>\n\n\n\n
A report does not mean anything is wrong. It is a standard check. Still, if you send large amounts, it helps to keep records that show where the money came from.<\/p>\n\n\n\n
<\/div>\n\n\n\nReporting Philippine bank accounts to the U.S.<\/strong><\/h2>\n\n\n\nIf you are a U.S. citizen or green card holder and you have a bank account in the Philippines, you may need to report it to the U.S. government.<\/p>\n\n\n\n
<\/div>\n\n\n\nWhen you need to report<\/strong><\/h2>\n\n\n\nYou must file a Report of Foreign Bank and Financial Accounts<\/a>, known as an FBAR, if the total balance of all your foreign accounts was more than $10,000 at any time during the year. This is true even if the balance went over $10,000 for just one day.<\/p>\n\n\n\nFor example, if you have a joint account with a parent in the Philippines and you deposit money that brings the balance above $10,000, you may need to file.<\/p>\n\n\n\n
You file the FBAR online with the Financial Crimes Enforcement Network using FinCEN Form 114. It is usually due April 15, with an automatic extension to Oct. 15.<\/p>\n\n\n\n
<\/div>\n\n\n\nWhy it matters<\/strong><\/h2>\n\n\n\nMissing an FBAR can lead to penalties of more than $10,000, even if the mistake was not on purpose. Keep receipts and records of money you hold or move for family members, and talk to a tax professional if you are not sure whether you need to file.<\/p>\n\n\n\n
<\/div>\n\n\n\nTips for sending money in 2026<\/strong><\/h2>\n\n\n\n\n- Pay with your bank account or debit card to avoid the 1% tax.<\/li>\n\n\n\n
- Keep your transfer receipts and records.<\/li>\n\n\n\n
- Check whether your foreign accounts need to be reported.<\/li>\n\n\n\n
- Use a licensed money transfer service.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
About Smiles Mobile Remittance<\/strong><\/h2>\n\n\n\n
How to avo<\/strong>id the extra 1%<\/h2>\n\n\n\nThe tax does not apply when you pay with:<\/p>\n\n\n\n
\n- Money from a U.S. bank account<\/li>\n\n\n\n
- A U.S.-issued debit or credit card<\/li>\n<\/ul>\n\n\n\n
This means most app-based transfers are not taxed. Sending through an app that you fund from your bank account or debit card helps you avoid the extra 1%.<\/p>\n\n\n\n
The IRS released proposed rules for the tax in April 2026. Final rules may add more details, so check for updates.<\/p>\n\n\n\n
<\/div>\n\n\n\nRemittances are not taxed in the Philippines<\/strong><\/h2>\n\n\n\nYour family in the Philippines does not pay income tax on the money you send. Money earned abroad by overseas Filipinos is generally not subject to Philippine income tax<\/a>, and sending it home does not change that.<\/p>\n\n\n\nYour family can receive your remittance in full. They may only need to show where the money came from if their bank asks.<\/p>\n\n\n\nPhoto credit: iStock<\/a><\/figcaption><\/figure>\n\n\n\n<\/div>\n\n\n\nLarge amounts may be reported<\/strong><\/h2>\n\n\n\nUnder the Philippines\u2019 Anti-Money Laundering Act, banks and other financial institutions must report cash transactions of more than 500,000 pesos in one banking day to the Anti-Money Laundering Council.<\/p>\n\n\n\n
A report does not mean anything is wrong. It is a standard check. Still, if you send large amounts, it helps to keep records that show where the money came from.<\/p>\n\n\n\n
<\/div>\n\n\n\nReporting Philippine bank accounts to the U.S.<\/strong><\/h2>\n\n\n\nIf you are a U.S. citizen or green card holder and you have a bank account in the Philippines, you may need to report it to the U.S. government.<\/p>\n\n\n\n
<\/div>\n\n\n\nWhen you need to report<\/strong><\/h2>\n\n\n\nYou must file a Report of Foreign Bank and Financial Accounts<\/a>, known as an FBAR, if the total balance of all your foreign accounts was more than $10,000 at any time during the year. This is true even if the balance went over $10,000 for just one day.<\/p>\n\n\n\nFor example, if you have a joint account with a parent in the Philippines and you deposit money that brings the balance above $10,000, you may need to file.<\/p>\n\n\n\n
You file the FBAR online with the Financial Crimes Enforcement Network using FinCEN Form 114. It is usually due April 15, with an automatic extension to Oct. 15.<\/p>\n\n\n\n
<\/div>\n\n\n\nWhy it matters<\/strong><\/h2>\n\n\n\nMissing an FBAR can lead to penalties of more than $10,000, even if the mistake was not on purpose. Keep receipts and records of money you hold or move for family members, and talk to a tax professional if you are not sure whether you need to file.<\/p>\n\n\n\n
<\/div>\n\n\n\nTips for sending money in 2026<\/strong><\/h2>\n\n\n\n\n- Pay with your bank account or debit card to avoid the 1% tax.<\/li>\n\n\n\n
- Keep your transfer receipts and records.<\/li>\n\n\n\n
- Check whether your foreign accounts need to be reported.<\/li>\n\n\n\n
- Use a licensed money transfer service.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
About Smiles Mobile Remittance<\/strong><\/h2>\n\n\n\n
This means most app-based transfers are not taxed. Sending through an app that you fund from your bank account or debit card helps you avoid the extra 1%.<\/p>\n\n\n\n
The IRS released proposed rules for the tax in April 2026. Final rules may add more details, so check for updates.<\/p>\n\n\n\n
Remittances are not taxed in the Philippines<\/strong><\/h2>\n\n\n\nYour family in the Philippines does not pay income tax on the money you send. Money earned abroad by overseas Filipinos is generally not subject to Philippine income tax<\/a>, and sending it home does not change that.<\/p>\n\n\n\nYour family can receive your remittance in full. They may only need to show where the money came from if their bank asks.<\/p>\n\n\n\nPhoto credit: iStock<\/a><\/figcaption><\/figure>\n\n\n\n<\/div>\n\n\n\nLarge amounts may be reported<\/strong><\/h2>\n\n\n\nUnder the Philippines\u2019 Anti-Money Laundering Act, banks and other financial institutions must report cash transactions of more than 500,000 pesos in one banking day to the Anti-Money Laundering Council.<\/p>\n\n\n\n
A report does not mean anything is wrong. It is a standard check. Still, if you send large amounts, it helps to keep records that show where the money came from.<\/p>\n\n\n\n
<\/div>\n\n\n\nReporting Philippine bank accounts to the U.S.<\/strong><\/h2>\n\n\n\nIf you are a U.S. citizen or green card holder and you have a bank account in the Philippines, you may need to report it to the U.S. government.<\/p>\n\n\n\n
<\/div>\n\n\n\nWhen you need to report<\/strong><\/h2>\n\n\n\nYou must file a Report of Foreign Bank and Financial Accounts<\/a>, known as an FBAR, if the total balance of all your foreign accounts was more than $10,000 at any time during the year. This is true even if the balance went over $10,000 for just one day.<\/p>\n\n\n\nFor example, if you have a joint account with a parent in the Philippines and you deposit money that brings the balance above $10,000, you may need to file.<\/p>\n\n\n\n
You file the FBAR online with the Financial Crimes Enforcement Network using FinCEN Form 114. It is usually due April 15, with an automatic extension to Oct. 15.<\/p>\n\n\n\n
<\/div>\n\n\n\nWhy it matters<\/strong><\/h2>\n\n\n\nMissing an FBAR can lead to penalties of more than $10,000, even if the mistake was not on purpose. Keep receipts and records of money you hold or move for family members, and talk to a tax professional if you are not sure whether you need to file.<\/p>\n\n\n\n
<\/div>\n\n\n\nTips for sending money in 2026<\/strong><\/h2>\n\n\n\n\n- Pay with your bank account or debit card to avoid the 1% tax.<\/li>\n\n\n\n
- Keep your transfer receipts and records.<\/li>\n\n\n\n
- Check whether your foreign accounts need to be reported.<\/li>\n\n\n\n
- Use a licensed money transfer service.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
About Smiles Mobile Remittance<\/strong><\/h2>\n\n\n\n
Your family can receive your remittance in full. They may only need to show where the money came from if their bank asks.<\/p>\n\n\n\n Under the Philippines\u2019 Anti-Money Laundering Act, banks and other financial institutions must report cash transactions of more than 500,000 pesos in one banking day to the Anti-Money Laundering Council.<\/p>\n\n\n\n A report does not mean anything is wrong. It is a standard check. Still, if you send large amounts, it helps to keep records that show where the money came from.<\/p>\n\n\n\n If you are a U.S. citizen or green card holder and you have a bank account in the Philippines, you may need to report it to the U.S. government.<\/p>\n\n\n\n You must file a Report of Foreign Bank and Financial Accounts<\/a>, known as an FBAR, if the total balance of all your foreign accounts was more than $10,000 at any time during the year. This is true even if the balance went over $10,000 for just one day.<\/p>\n\n\n\n For example, if you have a joint account with a parent in the Philippines and you deposit money that brings the balance above $10,000, you may need to file.<\/p>\n\n\n\n You file the FBAR online with the Financial Crimes Enforcement Network using FinCEN Form 114. It is usually due April 15, with an automatic extension to Oct. 15.<\/p>\n\n\n\n Missing an FBAR can lead to penalties of more than $10,000, even if the mistake was not on purpose. Keep receipts and records of money you hold or move for family members, and talk to a tax professional if you are not sure whether you need to file.<\/p>\n\n\n\nLarge amounts may be reported<\/strong><\/h2>\n\n\n\n
Reporting Philippine bank accounts to the U.S.<\/strong><\/h2>\n\n\n\n
When you need to report<\/strong><\/h2>\n\n\n\n
Why it matters<\/strong><\/h2>\n\n\n\n
Tips for sending money in 2026<\/strong><\/h2>\n\n\n\n
\n
About Smiles Mobile Remittance<\/strong><\/h2>\n\n\n\n