wages

Forum|Forum|6 years ago
February 22, 2020
1 reply
8 views

I work on a Disney Cruise ship. I am based out of Florida but the ship is flaged out of the Bahamas. Is my salary from a foreign country then? I pay federal withholding but no fica or medicare.

MaryK4

Level 15

Because the ship is considered Bahamas it is foreign income which is why no FICA is taken out. However, as a U.S. resident you are required to report and pay tax on all income so the withholding is used taken to pay taxes.

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mwbeach81Author

Level 2

Thanks, so I mark it as foreign income on my taxes even though I paid US income tax on it?

Carl

Level 11

There is a difference between "foreign income" and "foreign earned". Income paid to you by Disney, a U.S. registered corporation, is U.S. income.

If your income is reported on a W-2, then you enter the W-2 exactly as printed.

Now, the income may be "foreign earned", but it's not foreign income if paid in US dollars and reported on a W-2.

Being foreign earned "may" help on the tax front. I would highly suggest you contact a local tax professional such as a CPA to get clarification. It can get complicated because money earned while in U.S. waters is generally not considered foreign earned.

But then, I'm no expert on this. I most certainly wouldn't go on the word of anyone in this public user forum though, regardless of what expertise they may claim. If you want a taste of just how complicated this can be, check out the article at https://lifeofiris.com/2022/02/27/do-cruise-ship-crew-pay-taxes/