Tax Trails - Self-Employment Income |
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If you are a member of a crew on a fishing boat, you are considered to be self-employed for purposes of the self-employment tax if you meet ALL of the following conditions:
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You did not get, and are not entitled to get, any money for your work
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other than as provided in condition 2, and
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other than cash pay which does not exceed $100 per trip, which is contingent on a minimum catch, and which is solely for additional duties for which additional cash pay is traditional in the industry.
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You get a share of the catch or a share of the proceeds from the sale of the catch.
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Your share depends on the amount of the catch.
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The operating crew of the boat (or each boat from which you get a share for fishing operations involving more than one boat) usually numbers less than 10.
If you are an officer or a member of a crew and meet these qualifications, you are treated as self-employed and must report your income on Form 1040, Schedule C. Your fishing services can include those ordinarily related to fishing, such as shore services that includes cleaning, icing, and packing fish. You are not treated as self-employed if you are under age 18 and you are working for your father or mother.
You compute your self-employment tax on Form 1040, Schedule SE.
If you earn or receive income during the year that is not subject to withholding, or if you do not have enough income tax withheld, you may have to pay estimated tax.
For more information on commercial fishing, refer to Publication 595, Capital Construction Fund for Commercial Fishermen, and Publication 334, Tax Guide for Small Business. For more information on estimated tax, refer to Chapter 2 of Publication 505, Tax Withholding and Estimated Tax. Publication 595, Publication 334 and Publication 505 are available for download, or you may request a copy by calling 800-829-3676.
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Page Last Reviewed or Updated: December 03, 2008