Tax Strategies for Remote Workers and Digital Nomads in 2025-2026
The global workforce's shift toward remote work has triggered significant tax policy changes. The 'One Big Beautiful Bill' (OBBB), now Public Law 119-21, introduces new deductions while extending key provisions of the Tax Cuts and Jobs Act. For digital nomads and remote professionals, understanding these updates is critical for maximizing savings.
Two standout provisions dominate the landscape: the Foreign Earned Income Exclusion (FEIE), allowing up to $132,900 of foreign income exclusion in 2026, and the Foreign Housing Exclusion, which covers additional living costs in high-expense locales. Self-employed individuals can leverage the parallel Foreign Housing Deduction.
These changes reflect a broader recognition of decentralized workforces. The legislation implicitly acknowledges cryptocurrency's role in global labor markets—though direct crypto provisions remain sparse. Observers note the absence of specific digital asset guidance creates both planning challenges and opportunities for creative structuring.
