Cruising Both Ways

Hi June!

I need help! Here's one for you: I am a cruise ship employee from Manasquan, NJ and I've worked for Choppy Cruises for over 4 years.

My issue is that, technically, I am not self-employed but I get a 1099 from Choppy every year. I pay my taxes but this year I owe a ridiculous amount and I'm frustrated!

I have to pay a self-employment tax but I am an employee of Choppy. I wear their uniforms, abide by their contracts and rules of the ship. They pay my flights and feed and house me. I work outside of the USA but my pay is wired directly into my bank account out of their USA bank account. I save my receipts and write off as much as I can. I know some other Americans from the ship who don't pay taxes on their income.

Am I an idiot?

Is there some maritime tax law I don't know about? Is there any way to get around paying the self employment tax?

Please help!!
Paige


Hi Paige,

"Am I an idiot?" My guess is that you are not an idiot. But you do want to have your cake and eat it too. Apparently, you weren't concerned about the probable misclassification as a self-employed until it was disadvantageous to you.

You must decide whether you want to educate yourself on self-employed status and then whether or not you want to take action based on what you learn.


Be sure to read my post Cruise Ship Entertainer Gets No Tax Breaks

By the way, the folks not claiming income are committing fraud. Not good.

I changed the name of your cruise company ... just in case.

Best,
June