Fishing Boat Proceeds: Are They Subject to Self-Employment Tax for Commercial Fishermen?
Fishing boat proceeds can be subject to self-employment tax (SE tax). Crew members are self-employed and must pay SE tax if net earnings from fishing exceed $400. Payments over $5,000 for fish sold are reported on Form 1099-MISC. Income tax withholding rules may apply unless certain conditions are met. If a commercial fisherman operates as … Read more