I worked on a US cruise line sailing as a performer during 2018. Can I deduct my air fare to my home address and return to headquarters for my new employment contract?

[kwdewell]

The cruise line is US owned and based out of Miami.  At the end of a performing contract I fly home for a short period of time until it's time to report back to Miami to start rehearsals for my next contract. 

[AnnetteB · Accepted solution]

If you are an employee paid with a W-2, then the airfare back home is not a deduction. 

If you are an independent self-employed contractor paid with a 1099-MISC and reporting your income and expenses on Schedule C, then your airfare may be considered to be business travel.  Even then you would need to consider whether or not you also have earnings in your home location or only based out of Miami and on the cruise ship.  If the majority of your income is from your work on the cruise ship or Miami, then that is considered your tax home and your travel would not be deductible. 

[mwbeach81]

I worked on a cruise line and sailed out of a number of ports and countries.  My W-2 came out of Orlando, FL and federal taxes were withheld.  The ship however is based outside the US so no FICA or SS were with held.  Do I have to pay those FICA or SS taxes?   and would I have to pay both parts of it like I was self employed?

[ErnieS0]

No. You do not have to pay Social Security or Medicare tax because you are not working for a U.S. employer.

Revenue Ruling 92-106 says:

A foreign person is not an "American employer" as defined in sections 3121 (h) and 3306(j)(3) of the Code. Therefore, because the individual is performing services outside the United States, and· the individual's employer is not an "American employer", services performed by an employee are not included within the definition of "employment" for FICA and FUTA purposes. Therefore, remuneration paid the employee is not wages for FICA and FUTA purposes.

See page 259 of Internal Revenue Cumulative Bulletin 1992 [2]

@mwbeach81