Federal Income Tax

[smeyer418]

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']

note you didn't answer the original posters question either and your answer is wrong. The issue is whether an individual has to pay US taxes(or report the income) US law requires that a US citizen or national has to report ALL income where ever earned. this includes tax free income(because sometimes the alternate minimum tax applies). Taxes are due if the income is above a certain level and depending on the number of dependents and deductions.

Non US nationals working outside the US do not pay US income taxes.

[Aquahound]

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.

 

You are correct....sorry. I was confusing Customs laws with tax laws.

[GottaLuvCruising]

Related to this topic, which is totally unrelated to cruising...but we lived overseas for two years. The first $125K of earnings were excluded from U.S. taxes back then. We paid income taxes in Taiwan (where we lived) and got a credit of that amount on the taxes we did have to pay to the U.S. However, the great state of Maine (greedy ultra-liberal place that it is) taxed us on every penny of earnings while we neither worked nor lived there (because it was our home state of record).

 

The tax laws are complicated. And what a cruise ship crew member pays or doesn't pay in taxes is really of no concern to me and not the business of any cruise passenger.

[Taxguy77]

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

 

We cruise to get away from taxes, don't we?:confused::confused:

[G'ma]

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.

 

Once again, I am NOT trying to interpret U.S. tax laws...I'm responding to the question.

 

And, you're wrong...I do know something about tax laws for U.S. citizens working abroad; having done so for many years in several countries.....

 

The U.S. has tax treaty laws with over 40 countries and U.S. citizens whether residing or working abroad are subject to U.S. taxes. There are certain exemptions under certain circumstances.

 

But, no matter what, unless the ship is a U.S. flagged ship, the employees of that ship do not pay U.S. taxes unless one is a citizen of the U.S.... That is the answer to the OP question.

[G'ma]

note you didn't answer the original posters question either and your answer is wrong. The issue is whether an individual has to pay US taxes(or report the income) US law requires that a US citizen or national has to report ALL income where ever earned. this includes tax free income(because sometimes the alternate minimum tax applies). Taxes are due if the income is above a certain level and depending on the number of dependents and deductions.

Non US nationals working outside the US do not pay US income taxes.

 

Well, unlike some, I can read and have a wonderful grasp of the English language. Here, for your consideration, is the One-Liner original question....which I addressed:

 

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

[NCTribeFan]

Even IF some of us are CPAs and have dealt with foreign earned income and taxes, this is NOT the place to request any tax information and certainly not where you should be asking tax questions.

 

As I tell any client who calls and says "I have a simple tax question..."

 

There ARE no simple tax questions!

 

Why are you asking, OP? If you're a US citizen who is interested in working on a cruise ship, you need to consult - IN PERSON - a CPA who can discuss ALL the possible issues. If you aren't, then why are you asking this?

[okgirl]

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.[/quote]

 

But only on single jackpot winnings in excess of $1999. Before I could get the machine (or the casino host) to pay out my $2500 and $2000 jackpots I had to fill out a 1099G

[Snowbuddy]

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.[/quote]

 

But only on single jackpot winnings in excess of $1999. Before I could get the machine (or the casino host) to pay out my $2500 and $2000 jackpots I had to fill out a 1099G

 

Not exactly...according to the IRS website:

Gambling winnings are fully taxable and must be reported on your tax return. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes.

Depending on the type and amount of your winnings, the payer might provide you with a Form W-2G and may have withheld federal income taxes from the payment.

The payer must furnish a Form W-2G to you if you

receive:

1. $600 or more in gambling winnings and the payout is at

least 300 times the amount of the wager (except winnings

from bingo, keno, and slot machines);

2. $1,200 or more in gambling winnings from bingo or slot

machines;

3. $1,500 or more in proceeds (the amount of winnings

less the amount of the wager) from keno; or

4. Any gambling winnings subject to federal income tax

withholding.

[paul929207]

Whether you are given a 1099G or not, all gambling winnings are taxable on US Federal Income Tax returns.

[dkjretired]

Whether you are given a 1099G or not, all gambling winnings are taxable on US Federal Income Tax returns.

 

Absolutely correct, here is a great article that explains the whole thing....

 

http://www.cruise-casinos.com/jackpots.htm

[okgirl]

 

Not exactly...according to the IRS website:

Gambling winnings are fully taxable and must be reported on your tax return. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes.

Depending on the type and amount of your winnings, the payer might provide you with a Form W-2G and may have withheld federal income taxes from the payment.

The payer must furnish a Form W-2G to you if you

receive:

1. $600 or more in gambling winnings and the payout is at

least 300 times the amount of the wager (except winnings

from bingo, keno, and slot machines);

2. $1,200 or more in gambling winnings from bingo or slot

machines;

3. $1,500 or more in proceeds (the amount of winnings

less the amount of the wager) from keno; or

4. Any gambling winnings subject to federal income tax

withholding.

 

Whether you are given a 1099G or not, all gambling winnings are taxable on US Federal Income Tax returns.

 

These statements may very well be accurate. It is not how Carnival is addressing the situation. I've had many "single spin" wins of $250 to $1000. The machine pays it out and I've never had to fill out a 1099G or had to show my drivers license to obtain my winnings. In fact the $1000 win was on the $1 wheel of furtune on the big wheel spin and I just uploaded it into my players bank.

The 2 jackpots I won ($2500 on a $1 machine, and $2000 on a .25 machine), both exceeded what the machine would pay out, and per the casino host required that they fill out a 1099G before my winnings were paid to me.

I understand the letter of the law says that a US citizen must pay tax on any earnings regardless of where or how they are earned, but it's not my experience that other governments are reporting that information properly. I've never had to fill out anything for my winnings in landbased casino's in the caribbean.

 

And I do understand the larger picture here.....It is my responsibility to report it, even if I haven't had to fill out any traceable paperwork......

[paul929207]

No casino in a foriegn country is required to report anything to the IRS. I am not sure how this would affect a cruise ship that sails from a US port. If the IRS does not receive a 1099G, they are unlikely to know of the income (winnings) unless the taxpayer reports it on the tax return.

[smeyer418]

I've seen NCL require an IRS form before it paid out a jackpot of about $10,000....outside the limits but on a cruise that originated in the US on a non US Flagged vessel. What other cruise lines do I can't say. The fact of no 1099 or its equivalent doesn't change whether the income is taxable only if it had been reported although I doubt that many people report unreported income but that is a different issue....