News

Form 8233 “Facts and Fiction”

by Tom Andrews, CPA Any nonresident crewmember that has worked on a foreign flagged vessel has probably been asked to sign form 8233 “Exemption Form Withholding on Compensation for Personal Services of a Nonresident Alien”.   By signing this form the vessel/employer is relieved from the responsibility from having to withhold federal taxes from the wages […]

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AvMar begins withholding U.S. taxes from foreign crew

Originally Published in “The Triton” 09/27/2011. Ft. Lauderdale-based AvMar Payroll Services, one of the industry’s largest yacht crew payroll companies, has begun withholding U.S. income taxes from foreign crew while working on vessels in the United States. The practice runs in the face of long-standing traditions of non-resident yacht crew not paying tax on their […]

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Individual Tax Liabilities of Yacht Crewmembers

by Tom Andrews, CPA The purpose of this memo is to discuss the American crewmembers responsibility when it comes to making quarterly estimated tax payments. In most cases crewmembers will be paid in the following manner: Crewmember issued W-2 with taxes withheld. Crewmember issued 1099 no taxes withheld. Crewmember works on foreign flagged vessel with […]

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Identity Theft and How it Affects Yacht Crewmembers

By Tom Andrews, CPA For several years now I have noticed a substantial increase in the number clients that have been victims of identity theft. The identity theft I am referring to is not the type in which a perpetrator hijacks a person’s credit or bank accounts, it is the type in which an imposter […]

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Home Office Deduction for Yacht Crew

by Tom Andrews, CPA Yacht Crewmembers frequently ask me about the “home office deduction” and how they may benefit from its application. Before we discuss the significance of the home office deduction in the luxury yacht industry it is first important to define this deduction. Section 280A(c) ( this is the section of internal revenue […]

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Social Security and Luxury Yacht Crew

by Tom Andrews, CPA Social Security tax is a tax that is assessed on your earnings/labor, this tax is withheld by your employer and remitted to the IRS. The difference between Social Security tax and federal income tax is that Social Security/Medicare tax is used to provide benefits to individuals when they reach 65, federal […]

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Yacht Crew Travel Expenses

by: Tom Andrews, CPA A career as a professional yacht crewmember and travel expenses go hand in hand, while many crewmembers work for vessels that pay for all travel expenses I have encountered more and more crew over the past five years (mainly due to the recession and having to take on freelance work) incur […]

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Nonresident Crewmember Tax Treaty Memo 2014

  Form 8233 in the previous tax year, please be advised that if you will be qualifying for tax treaty benefits for the current year you will be required to provide a signed updated form 8233. As a nonresident crewmember on board a foreign flagged luxury vessel our office is required withhold United States income […]

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File Your Tax Return At The Right Time for Luxury Yacht Crew

by: Tom Andrws, CPA Traditionally the Internal Revenue Service begins accepting tax returns for processing in mid-January however it has recently been announced that the IRS will be delaying the acceptance of tax returns until January 31st.  The new start date is being attributed to the government shutdown which has already added additional stress to […]

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Understanding Your S Corporation/LLC for Yacht Crew Members

by: Tom Andrews, CPA Many yacht crew members have chosen to do business by forming a company (for the purposes of this column I am referring to an S Corporation or LLC), while there are advantages and disadvantages to doing business as a company the focus of this column is to remind those who are […]

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