The tax code, as it applies to the maritime industry, has been evolving in recent years. Sailors can legally write off such things as meal allowances and port deductions, resulting in substantial refunds.
However, there are some areas lacking universal agreement on interpretation by tax preparers. These disputed areas include:
War Zone Exclusions. According to one well known West Coast tax firm, other firms have been incorrectly filing these writeoffs for years. They claim that merchant mariners are ineligible for such exclusions.
The Military Family Tax Relief Act of 2003. Not all tax preparers claim this because some firms allegedly have not kept up with new rules.
Foreign Earned Income Exclusion. Tax industry opinions differ as to whether working on international waters constitutes working in a foreign country.
One reliable piece of advice: mariners should save all work related receipts and keep a daily travel log.
(This article in no way provides advice or makes recommendations for tax preparation. Mariners should always consult a qualified tax advisor knowledgeable on maritime filing laws.)1 2 3
Category: General
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