3181753
About 90% of my time working is travelling overseas on a container ship to ports in countries such as Spain, Egypt, Africa, India. A small amount (about 10%) is on the east coast of the U.S. going up and down the coast. How does this get reported and can it help my California State amount due/filing as my company does not withhold California state taxes. My employer is based in Norfolk, VA. Can it also help lower the amount due on my Federal taxes?
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Being in international waters does bot get a sec 911 exclusion.
Yes, @ee-ea is correct in that you are working in international waters thus your income is not reported any differently on your US tax return and there is no foreign income exclusion (Sec 911 income). In addition, this doesn't provide any tax relief for taxes owed on your California state income.
Even though your employer is located in Virginia, this will not lower the taxes due on your federal or California state income tax returns.
As a US citizen or green card holder, you must report and pay federal income tax on all your world-wide income no matter where you live or earn the money.
If you maintain an abode (permanent residence) in a state, you generally must file and pay income tax in that state, even if you are temporarily living away from your abode. And there is no time limit on being "temporarily away", it depends on all the facts and circumstances. However, it is possible to change or abandon your abode, then you would not owe state income tax. For example, if you moved to Texas, you would owe no state income tax. We can give you more information about the concept of abode if you think that will help you.
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