Tax Planning
Maximizing Savings: Smart Tax Planning Moves Under the One, Big, Beautiful Bill
Explore key tax planning strategies under the new One, Big, Beautiful Bill—how gig income, new deductions, and remittance transfer rules open planning opportunities.
By NomadicTax Research Team • 5-8 min read • May 27, 2026
## Understanding the One, Big, Beautiful Bill (OBBB)
The OBBB is sweeping tax legislation, effective from 2025–2026 and beyond, introducing new deductions, credits, and compliance requirements. ([irs.gov](https://www.irs.gov/newsroom/the-one-big-beautiful-bill-what-gig-economy-workers-should-know?utm_source=openai)) Key areas include the **no tax on tips**, **no tax on overtime**, **no tax on car loan interest**, and enhanced senior deductions. ([irs.gov](https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals?utm_source=openai))
## Tax Planning Strategies You Can Use Now
### 1. Maximize New Deductions
- **Tips**: Gig or service workers can deduct up to *$25,000* for qualified tips on 2025–2028 returns. Verify your occupation is on the IRS’s list once finalized. ([irs.gov](https://www.irs.gov/newsroom/the-one-big-beautiful-bill-what-gig-economy-workers-should-know?utm_source=openai))
- **Overtime & Car Loan Interest**: If applicable, use these new deductions; ensure you retain documentation. ([irs.gov](https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals?utm_source=openai))
- **Senior Deductions**: Individuals 65+ can claim an additional deduction. Evaluate tax filing status and communal income limits. ([irs.gov](https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals?utm_source=openai))
### 2. Plan for the Remittance Transfer Tax if You Send Money Abroad
The OBBB imposes a **1% tax** on remittances sent via physical instruments (cash, money orders etc.) starting January 1, 2026. If you're sending remittances:
- Use wire transfers or digital methods to avoid the tax where possible.
- If physical instruments are unavoidable, try to limit the amount or batch transfers to reduce frequency.
- Ensure remittance providers collect the tax correctly or risk liability yourself. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
### 3. Depreciation Planning for Production Property
If you're in **manufacturing, agriculture, or refining**, you may benefit from the special depreciation allowance: up to **100% deduction** on the unadjusted basis of qualified production property placed in service after July 4, 2025 (through Dec. 31, 2030). ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-guidance-on-special-depreciation-allowance-for-qualified-production-property-announce-upcoming-proposed-regulations-under-the-one-big-beautiful-bill?utm_source=openai))
## Real-World Examples
- **Gig Worker**: Jane works part-time as a waiter and majorly supports herself through rideshare. In 2025, she earns $30,000 in tips. She deducts $25,000 under the “no tax on tips” rule, saving income tax on that portion.
- **Small Manufacturer**: WidgetCo places eligible equipment into service in August 2025. They may elect to claim 100% depreciation, reducing taxable income significantly—ensure asset meets “qualified production property” criteria.
- **Person Sending Remittances**: Samuel sends family support via money orders twice a year. Each transaction triggers the remittance tax. If he consolidates them into a single digital bank transfer instead, he avoids the 1% tax per transfer.
## Things to Watch Out For
- **Phase-outs**: Many new deductions phase out at higher income levels—know your AGI limits. ([irs.gov](https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals?utm_source=openai))
- **Documentation**: Maintain strong records, especially for tip deduction, overtime, loan interest, production activity, and remittances.
- **Regulation changes**: Some rules still under proposed regulations (e.g. remittance tax definitions). Policies may shift. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
By staying on top of these changes, aligning your planning to new law changes, and working with a trusted tax professional, you can take full advantage of your options under the OBBB.