Go Back   CruiseMates Cruise Community and Forums > People > Crewmembers
Register Forgot Password?

Crewmembers If you work on a ship or have in the past

Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old June 26th, 2012, 09:42 AM
Junior Member
Familiar Face
 
Join Date: Jun 2012
Posts: 11
Default Are US citizens taxed on value of room & board?

Is there any taxable income or taxes related to the value of the room and board while working on the ship?
Reply With Quote
Sponsored Links
  #2 (permalink)  
Old June 26th, 2012, 02:35 PM
sz sz is offline
Senior Member
First Mate
 
Join Date: Jun 2005
Posts: 310
Default

No - Only thing taken out is the 'usual' federal taxes. If you haven't worked long enough to accrue enough social security credits, you might want to look into paying those as the two lines I've worked with didn't take out those.

PS - check out sailortax.com - still can pertain to the cruise industry . ..
__________________
sz . . .
Reply With Quote
  #3 (permalink)  
Old June 26th, 2012, 02:44 PM
Junior Member
Familiar Face
 
Join Date: Jun 2012
Posts: 11
Default

Thanks again, SZ. I'll check out that website.
Reply With Quote
  #4 (permalink)  
Old June 26th, 2012, 02:49 PM
Junior Member
Familiar Face
 
Join Date: Jun 2012
Posts: 11
Default

SZ, have you worked for Carnival? Just wondering if they deducted Social Security.
Reply With Quote
  #5 (permalink)  
Old June 27th, 2012, 12:12 PM
Senior Member
First Mate
 
Join Date: Jan 2006
Posts: 494
Default

The Cruise Lines collect only Federal Income Tax from US Citizens working on ships.
US Citizens are required to submit a W-4 form to the cruise line every year.
No Social Security or other fees are collected.

However, if your primary residence is outside the USA, you are tax free for the first $92,000 in earnings every year.
Reply With Quote
  #6 (permalink)  
Old June 27th, 2012, 02:31 PM
Junior Member
Familiar Face
 
Join Date: Jun 2012
Posts: 11
Default

Thanks, Bruce. I ran across that $92K exemption. I guess that wouldn't work if you spend your 7-8 week break at home in the States.

I'm actually asking these questions on behalf of my daughter who will be doing Shipboard Accounting on Carnival.
Reply With Quote
  #7 (permalink)  
Old June 27th, 2012, 02:35 PM
Paul Motter's Avatar
Administrator
Admiral
 
Join Date: Aug 2000
Location: in my office!
Posts: 10,846
Send a message via AIM to Paul Motter
Default

Funny - back when I worked on ships we just got paid a flat rate every month - no deductions at all.
Reply With Quote
  #8 (permalink)  
Old June 29th, 2012, 12:24 PM
Senior Member
First Mate
 
Join Date: Jan 2006
Posts: 494
Default

Quote:
Originally Posted by Luv2Cruise25 View Post
Thanks, Bruce. I ran across that $92K exemption. I guess that wouldn't work if you spend your 7-8 week break at home in the States.

I'm actually asking these questions on behalf of my daughter who will be doing Shipboard Accounting on Carnival.
Surprisingly, it does work.

If her Primary residence is outside the USA, she can spend as much time as she likes VISITING the USA. Please check out the IRS definition of a primary residence. So long as she is not living or working in the USA, she is still tax exempt if she lives in another country.

I carry a US Passport. My primary residernce is in China, and I have a second home in Europe. My ship is frequently sailing itineraries that start in the USA. But that does not qualify as working in the USA. My ship has a non-US flag and I am paid in cash by an international company. I rarely visit the USA, but I can - and still retain my tax exemption.
Reply With Quote
  #9 (permalink)  
Old June 29th, 2012, 07:21 PM
Junior Member
Familiar Face
 
Join Date: Jun 2012
Posts: 11
Default

Thanks, Bruce. So you think a US citizen working 7 to 8 month contracts and has no residence at all who may or may not visit her parents in Florida during her 7 week vacation would qualify as the foreign worker? Does the ship which may be home ported out of Florida qualify as a foreign residence? i know this is not the place for professional tax advice but this gives me some good information to ask further questions and get clarification.
Reply With Quote
  #10 (permalink)  
Old June 29th, 2012, 09:40 PM
Senior Member
First Mate
 
Join Date: Jan 2006
Posts: 494
Default

Quote:
Originally Posted by Luv2Cruise25 View Post
Thanks, Bruce. So you think a US citizen working 7 to 8 month contracts and has no residence at all who may or may not visit her parents in Florida during her 7 week vacation would qualify as the foreign worker? Does the ship which may be home ported out of Florida qualify as a foreign residence? i know this is not the place for professional tax advice but this gives me some good information to ask further questions and get clarification.
You should double-check, but I have been advised many times that a cruise ship does not qualify as a residence in the eyes of the IRS.

Many countries (including the USA) insist that you must have a legal residence somewhere. Establishing a legal residence requires rent receipts, bills mailed to that address in your name, residency permit, etc.

Many of my colleagues have established primary residences in countries other than their home countries in order to avoid paying taxes to a country where they do not live or work. The IRS is very clear on what constitutes a primary residence, and it is very important to follow the rules on that subject.
Reply With Quote
  #11 (permalink)  
Old July 1st, 2012, 08:53 PM
Junior Member
Familiar Face
 
Join Date: Jun 2012
Posts: 11
Default

Based on what you've said and the research on the topics, it looks like she would still pay income taxes, but would be exempt from Social Security and Medicare tax.

Is that the experience of you U.S. folks?
Reply With Quote
  #12 (permalink)  
Old July 2nd, 2012, 06:39 AM
Junior Member
Familiar Face
 
Join Date: Mar 2012
Posts: 13
Default

The US finds every way to collect taxes. Its many many wars are very very costly.
Reply With Quote
Reply

Bookmarks

Tags
board, citizen, citizens, cruise, exempt, medicare, powered, security, ship, social, tax, taxed, us, vbulletin, worker, working

Similar Threads
Thread Thread Starter Forum Replies Last Post
Non U.S Citizens?? Jaanu0912 Carnival Cruise Lines 9 May 31st, 2005 09:38 PM
Upgrading room on Board Mark Calkin Norwegian Cruise Lines 8 January 14th, 2004 06:23 PM
Is there an iron and board provided in the room? Paul Celebrity 19 January 6th, 2003 08:34 PM
*&(*&^(*%*^ Chat Room Marc Chit - Chat for Cruisers 6 September 16th, 2002 03:14 PM
What is your favorite room on board any ship? sailinglisa Chit - Chat for Cruisers 22 August 14th, 2001 07:22 PM


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


 

All times are GMT -4. The time now is 06:10 AM.
design by: Themes by Design

Powered by vBulletin® Version 3.8.7 Beta 1
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO 3.6.1