I hoping to gain some insight on how proceed with filing my 2024 taxes. I am brand new to this industry and was on my first full hitch working as an Ordinary Seaman aboard an MSC contracted tanker. We spent about 2 months in the Red Sea, a designated a Combat Zone as per Executive Order No. 12744.
I was told that any income earned while working in said zone would be tax exempt. I’ve asked several tax professionals, the captain, and the company and no one seems to have a clear answer. My W-2 does not indicate anything related to “Combat Zone” etc. My understanding is that military personnel have this automatically or preemptively not taxed, but since I’m working as or for a contractor, then I’d have to file for this exemption. I hope someone out there could help point me in the right direction. Thanks in advance - J
I think that only applies to the military, and of course merchant mariners are not in the military.
I could be wrong though, you really need a tax professional who specializes in taxes for seafarers.
Taking medical, legal, or tax advice off the internet is never a good idea.
Try this guy
Thanks so much for the reply, and I’ll definitely look into the linked tax prof. I as well heard that the combat zone exclusion usually applies to only military, but we were on a military contract, and multiple people got word from the company, including the captain that we should be getting some kind of tax exemption similar to military personnel.
See the “Alert” at the top of this page with reference to what you are looking for regarding civilian contractors (excluding gov employees), including links to the relevant forms and instructions.
May still be wise to ask a tax professional if this is still valid or if it sunset.