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Tax Info for American Crew?

Discussion in 'Yacht Crews' started by ccbeachlife, Jun 14, 2009.

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  1. ccbeachlife, Jun 14, 2009
    #1
    ccbeachlife

    ccbeachlife New Member

    Joined:
    Aug 24, 2007
    Messages:
    3
    Location:
    SF Bay Area
    Hello,

    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.

    Thanks!
  2. CharlesFCook, Jun 14, 2009
    #2
    CharlesFCook

    CharlesFCook New Member

    Joined:
    Jul 11, 2007
    Messages:
    9
    Location:
    When I'm not on a boat I'm at my home in Iowa.
    I think you can pay full Federal and State taxes just like the rest of us or nothing. Do you get a w-2 or 1099? If not I don't think the IRS knows you are getting paid. People who get paid cash don't get a w-2 or 1099 and don't pay taxes on it.
  3. NYCAP123, Jun 14, 2009
    #3
    NYCAP123

    NYCAP123 Senior Member

    Joined:
    Mar 14, 2008
    Messages:
    11,205
    Location:
    Long Island, NY
    If you don't get a 1099 or W-2 you are self-employed and responsible to report you income and make quarterly deposits (figure 30% of gross) also taxes in your state of residence. Of course you can just stay silent as long as you don't put money into a bank account, want credit, a car or a house within the next 3 years or so. If you do get caught there is a very fine B & B where you can get free room and board out in Levenworth if the IRS finds out anyway (like if a rival turns you in).