Tuesday, July 21, 2009

Pay your taxes!!!!

Yes, many people enquire as to whether they should declare their cruiseship income. YES!!!
Yes, it is true, most positions are paid onboard in cash - so the government will never know - that is untill they ask you one day, how did you support yourself financially for X period of time? Gulp ((( Yep, if they catch you defrauding them, you are going to jail......
So, here's what you do... As a crew member, for tax purposes, you are considered an independant contractor - not an employee. Therefore, you should declare all your earnings because you can write off many expenses as an independant contractor - the flight (even if the cruise line pays for it because it is part of your contract income and it is in your name), medical examinations, hotels, meals, onboard expenses, some entertaining expenses if they are relevant to your position, clothing, dry cleaning/laundry, personal grooming and sundry items, laptop and accessories...to name a few. Of course each persons country, state and personal situtation will determine exact benefits - this is where you spend a few bucks each year on an accountant to file your taxes for you. Please do not try to hide the cash from Big Brother! Simply set yourself up like a business, and enjoy the benefits! Plus, over time, you will have established a legitimate, self employed income.