Tax Info for American Crew?
I am an American employed on a motoryacht that does not travel in US waters. I am somewhat new to the industry and am trying to figure out my tax situation. I have asked the other American on board what he does and his response was that he does not report anything to the IRS, which seems a little dangerous if he ever wanted to go and qualify for a home loan or started to pay taxes again.
Unfortunately it looks like I can not apply for the IRS Foreign Income Tax Exclusion because I have spent less than 330 days outside of the US (25 days vacation in the US and 20 days spent in international waters, which doesn't count as being outside the US according to the IRS website).
Any American crew out there that have a legal way of handling the tax man? Maybe a way to pay reduced taxes? Pay Federal but not State tax? Social Security tax?
I have heard of some yachts paying the American crew's taxes that way the crew members net income is equal to that of non American crew in the same position (who seem to be able to get away without having to pay taxes to their home countries, either illegitimately or legitimately).
Can anyone recommend a good tax man that deals with Americans in the yachting industry?
Any help would be appreciated.