American Freighter Tax Question?
 

I am heading over to the freight next year. Not sure how much I will have to pay for FICA. Can someone give me some advice about that? I went to SS website and it says I must pay 15.3% up to 97000USD. That seems a bit excessive. Of course, I can tax deduct half of that on my Federal taxes. Big deal.

Also, any way to minimize my taxes on the 15.5% provident monies?

Thanks

HappyD (well relatively happy)

PS can someone PM with a great tax advicer in America?

HappyD
I think you will find you are liable for half and the employer is liable for half. So you will have to pay 6.2% and another 1.45% medicare levy and CX should match it! It is 6.2% capped at an income of $97,500 and medicare levy on entire income. Can't advise on tax adviser or deductibles I'm afraid;-/

clear as mud?

Thanks Numero.

I must of found some faulty info.

If anyone can help with a tax adviser, I would appreciate it.

Thanks again

You do not HAVE to pay FICA if you are employed by USAB. If you WANT to pay, you MAY. Once the US basing goes "onshore" you'll be working for a US company (i.e. Cathay Pacific USA, Inc., which employs the ground personnel and the flight attendants based in SFO) and will be treated as any other American employee.

I know of no legal way to keep the 15.5% not subject to US taxes. It would need to be placed in a US-recognized retirement fund (i.e. 401(k) or SEP-IRA), of which USAB has none. Once again, when the US basing goes "onshore," this will change.

Thanks Jose,

I appreciate the insight.

See ya all soon