Do I have to pay tax on my fishing income?
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If you are a member of a crew on a fishing boat, you must pay
self employment tax on your fishing income if
you meet ALL the following conditions:
 | you did not get, and are not entitled to get, any money for your
fishing work (other than as
provided below); |
| you get a share of the
fishing catch or a share of the proceeds from the sale of the
fishing catch; |
| your share of the
fishing catch depends on the size of the fishing catch; |
| the operating red 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
IRS tax qualifications, you are
treated as self employed and must report your taxable fishing income on Form 1040, Schedule C. Your fishing
income services can include those ordinarily related to fishing, such as shore services that
includes cleaning fish, icing fish, and packing fish.
You compute your self
employment tax on taxable fishing income on Form 1040, Schedule SE.
If you earn or receive
taxable fishing income during the tax year that is not subject to tax withholding, or if
you do not have enough income tax withheld, you may have to pay estimated
tax on your fishing income.
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Related tax
information about fishing income |
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| Income Related Questions and Answers |
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IRS publications about fishing income:
For more information about fishing income refer to
IRS Publication 595, Tax
Highlights for Commercial Fishermen. Also see
IRS Publication 17, Your Federal
Income Tax. |
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Ask Julian Block your IRS and tax questions! |
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web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
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