Federal Income Tax

Does the crew members on cruise ships not registered in the US pay any income tax and is so to whom?

Cruise ship employees are paid while the ship is at sea and pay no US taxes. Of course they get no Social Security or Medicare when that time comes.

Crew, officers, cooks, dancers and even the doc gets paid at sea.

Does the crew members on cruise ships not registered in the US pay any income tax and is so to whom?

Assuming they are not US citizens, they owe no tax to the US. Whether they pay to their home country would depend on its laws.

Assuming they are not US citizens, they owe no tax to the US. Whether they pay to their home country would depend on its laws.

Even if they were US citizens how could they owe US taxes when they are working not in the US?

Even if they were US citizens how could they owe US taxes when they are working not in the US?

It does not matter where the income is earned, if you are a US citizen, you owe taxes on the income. Nw, there may be no way for the government to find out about the income, but legally, it is taxable.

Why is it important to know that? They are not US citizens, and don't pay taxes to the United States--the ship isn't registered to the US, either....they don't pay taxes and are not bound by our laws.

I was reading a story about that awhile back. There are US citizens who have lived overseas for decades and they have to pay Federal Taxes, plus the taxes in the country they live in now.

Even if they were US citizens how could they owe US taxes when they are working not in the US?

US citizens are required to pay US income taxes on their worldwide income regardless of where they live. (Most other countries with an income tax are not so grabby.) That said, they are probably entitled to claim a "foreign tax credit" for income taxes paid to other countries (thereby minimizing double taxation) and they MIGHT be entitled to claim a "foreign earned income exclusion" with respect to a certain amount of job earnings in foreign countries (although I am not sure whether working on a foreign flagged cruise ship would qualify for that).

Does the crew members on cruise ships not registered in the US pay any income tax and is so to whom?

Nope. Cruise ships are not registered in the U.S. and are therefore exempt from U.S. taxes and all Labor laws, including minimum wage, and other laws of the U.S. They are, however, subject to the laws and tax codes of the country in which they are registered.

I don't think Liberia, Panama, Bahamas and others care much.....

Nope. Cruise ships are not registered in the U.S. and are therefore exempt from U.S. taxes and all Labor laws' date=' including minimum wage, and other laws of the U.S. They are, however, subject to the laws and tax codes of the country in which they are registered.

 

I don't think Liberia, Panama, Bahamas and others care much.....[/quote']

 

 

Its true Cruise lines don't pay taxes on ships registered outside the US but US companies do pay taxes on all income earned anywhere unless there is an exclusion or they pay taxes elsewhere. They do pay registration fees there. Also foreign flagged cruise ships are not exempt from all US laws for instance the US disability law DOES apply to ships that call on the US and must obey coast guards rules and health laws. Don't believe me....its in this case against NCL....

 

http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=US&vol=000&invol=03-1388

 

oh and the cruise lines have to pay taxes on the income they earn on Casino's when in Alaska waters....

The employees on cruise ships are not liable for US income taxes unless they are citizens of the US.

Passengers, who are US citizens, owe taxes on winning from things like bingo and the casino.

i did have a conversation with one of the australian dealers and they are supposed to claim their income when they come home or something but now that tips are on your s&s card in a lot of cases, it's a record of what they are earning.

Don't forget that any non-US Citizen who holds a US Green Card must pay US Income Taxes on money he earns anywhere on Earth. Most ship's crew do NOT want a US Green Card.

US Citizens who live permanently outside the USA are not taxed on their first $85,000 or so of income - regardless of where it is paid. But they must still file a US Tax Return every year.

If this topic is interesting to you, and you have NOTHING else to do today, here is some extra credit reading:

Individual Foreign Earned Income/Foreign Tax Credit - IRS Statistics

Tax Topic 856 - Foreign Tax Credit

Foreign Tax Credit - Choosing to take Credit or Deduction

There will be a pop quiz on Monday. ;)

If this topic is interesting to you, and you have NOTHING else to do today, here is some extra credit reading:

 

Individual Foreign Earned Income/Foreign Tax Credit - IRS Statistics

Tax Topic 856 - Foreign Tax Credit

 

Foreign Tax Credit - Choosing to take Credit or Deduction

 

There will be a pop quiz on Monday. ;)

At least I have a week to study (or come up with an excuse to stay home sick). :)

I'm calling in sick ahead of time. No tax test for me!

I think I am having a bad dream...I come to this site to read up on cruise stuff, give myself a little bit more to think about & look forward to for our next cruise, and to have a brief respite from work (I am a CPA)...and, POW, income taxes comes up! :eek: eek! somebody please wake me!

:D

Passengers, who are US citizens, owe taxes on winning from things like bingo and the casino.

Are you sure about that?

It is my understanding that cruise ship winnings under $10,000 are not taxable.

It is my understanding that there is no difference between a cruise ship casino & a vegas casino, except for the fact that you get a 1099 from Vegas, but not from a ship. However, I could be mistaken. I have not had the problem trying to decide how much of my winnings to report.

Are you sure about that?

 

It is my understanding that cruise ship winnings under $10,000 are not taxable.

nope that is wrong. All winnings are taxable. The issue is whether the cruise line reports them or not. But tax advice on here is about as accurate as medical advice.....

nope that is wrong. All winnings are taxable. The issue is whether the cruise line reports them or not. But tax advice on here is about as accurate as medical advice.....

Things must have changed in the last few years. In 2004, my brother-in-law won the jackpot bingo for $6500. According to the purser, he was not obligated to report it because it was won at sea. He paid no taxes on it.

I'll check with some CBP buddies of mine and get back.

Yep, I was correct. Winnings, or "monetary instruments" of less than $10,000 do not have to be declared.

Yep, I was correct. Winnings, or "monetary instruments" of less than $10,000 do not have to be declared.

that is a different issue. yes cash in excess of $10,000 whether won or just carried needs to be declared. All winnings by US citizens or nationals is taxable. Ask the IRS not the CBP its a different rule.

Its true Cruise lines don't pay taxes on ships registered outside the US but US companies do pay taxes on all income earned anywhere unless there is an exclusion or they pay taxes elsewhere. They do pay registration fees there. Also foreign flagged cruise ships are not exempt from all US laws for instance the US disability law DOES apply to ships that call on the US and must obey coast guards rules and health laws. Don't believe me....its in this case against NCL....

 

http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=US&vol=000&invol=03-1388

 

oh and the cruise lines have to pay taxes on the income they earn on Casino's when in Alaska waters....

The question was about shipboard employees and if they pay U.S. taxes. It was not about U.S. tax laws in general, who pays what to whom and what U.S. laws are enforceable on a cruise ship.

The question was about shipboard employees and if they pay U.S. taxes. It was not about U.S. tax laws in general' date=' who pays what to whom and what U.S. laws are enforceable on a cruise ship.[/quote']

1. you answer the questions you want to I'll answer the questions I want to.

2. You really don't know anything about US tax law.

 

US national employees(US citizens or permanent residents) are required to report all income where ever earned. There are special exemptions and whether they pay taxes depends on their individual returns.