Service Issues

[IAcruising]

24 minutes ago, graphicguy said:

I’ve always wondered in crew income is taxable at all, given it’s earned mostly in international waters?

 

I'm no tax accountant, but I'm pretty confident that if an American citizen makes an income on the high seas, the IRS is going to want their cut. As for other countries, who knows?

 

[complawyer]

they do want their cut if an american citizen gets super lucky in the casino

[fshagan]

2 hours ago, IAcruising said:

 

I'm no tax accountant, but I'm pretty confident that if an American citizen makes an income on the high seas, the IRS is going to want their cut. As for other countries, who knows?

 

 

I researched this before the pandemic when I was still in the tax game, so it may have changed by now. But American employees on cruise ships have withholding on their paychecks and have to file their tax return every year. Same as most working people in this country.

 

The United States taxes all income earned world-wide. It's based on your "tax home", not the location where you earn it. Some other countries only tax income earned within their borders. This tax scheme is based on where you earn, not where your "tax home" is. I believe the UK and the Philippines are two of the countries that don't tax income earned outside of their countries.

[ontheweb]

And there is also a foreign tax credit if a US citizen pays income taxes to a foreign government.

[graphicguy]

10 hours ago, mugtech said:

Depends on the crew member's country of origin concerning income taxes.  U S is one of the few nations which requires citizens to report all of their world wide income for tax purposes.  Other than POA not too many US citizens working at sea, it is all taxable.  There are certain exclusions allowed on w-2 income while operating out of a foreign address.

Interesting!

 

Yeah....Uncle Same is going to get his tax revenue.  POA is the outlier.  

 

The rest?  Different countries of origin (with the exception of San Juan, which is also part of the U.S.) not sure how they look at wages earned in international waters.

 

Any international tax accountants in here? 😉

 

That said, I have met a few U.S. Citizens working on other ships (non POA) but they were either working in the Cruise Next office or as part of the entertainment crew.

Edited January 12 by graphicguy