What Fishing Boat Proceeds Have To Do With Taxes
It’s something that has the internet bothered lately and asking questions. Surprisingly, it doesn’t have that many accurate answers! Just what are fishing boat proceeds and why does it appear in my tax form or forms? What can I do to benefit myself from it? Can it harm me?
Why don’t we find out together? Let’s have a read, shall we? I’ll be here to help you find out a few things about the topic and hopefully answer a few questions you may have on the subject matter!
Taxes are the lifeblood of a country, so it’s fitting that the citizens know as much about it as possible.
Taxes, The Lifeblood Of The State
In this world, nothing can be said to be certain, except Death and Taxes.
First, we have to know that the proceeds are taxed as an independent income. Let’s have a quick recap of what taxes are for:
Taxes, no matter how many of us hate them, are what keep the cogs of a working nation going. As much as you’d want to keep all your income to yourself, you do have an obligation to pay part of that income to your government to keep you and your fellowmen safe and secure.
A State cannot function without proper conditioning and maintenance in the form of taxes. It is from taxes that government employees are paid, government projects are implemented, and all other public services.
For our beloved State to continue working and deliver its performance, it is critically dependent on taxation. This reason supports why tax evasion is a severe crime.
Any income from fishing boats is taxable as appearing in a 1099 MISC form, which we will be going into detail in a bit.
The 1099 Misc And The W2 Forms
You will reap what you sow; your harvest is ultimately your choice.
The W2 and the 1099 MISC FORMS are usually the types encountered when filling up taxes.
The W2 form is usually filled up when you are an employee of a company or business. There has to be an existing employer-employee relationship for this form to apply. If you’re a bit confused as to whether or not that exists, you can check this link:
A W2 will reflect your income or the money you made from an employer. It will also reflect taxes withheld from your pay.
Fees will be deducted from your income in return both for the employer’s, and governments provided benefits and what you’ll be receiving will already be what you earned minus the necessary deductions.
The 1099 MISC or “Miscellaneous Income” form is for Freelancers or Independent Contractors, those who receive from work done that does not have an employer-employee relationship.
Because there’s no employer to withhold any income for payment of taxes, you’ll be receiving the full amount of your income, and part of which you’ll need to pay for your taxes.
YouTube’s Business Finance Coach Channel has this video that will help you fill out a 1099 MISC form:
Fishing Boat Proceeds
These are the income you earn from a business involving fishing vessels.
When you own a fishing boat or vessel, have the necessary requirements, (Like licenses and permits) and gain through the use the said boat, then you have yourself what is considered as “fishing boat proceeds.”
If you’re wondering how to have a good start with the fishing business, then this link will help you:
This premise is also true for fishermen or crews who are earning from their work on a fishing boat that belongs to someone else but aren’t considered “employees’ by the owner. The term “self-employed crew” will also have to pay a certain tax from their income.
Why Is It Different From Other Taxes?
Wondering why this category deserved its separate box for filling up? In a way, you can call any earning from a fishery business or any fishing work “unique” as they have their different laws for taxation.
Why? Because the nature of the fishery is not the same as your usual business or trade, sure there might be similarities, but catching fish out on a boat has been labeled to perform differently so much so that lawmakers devised a different way to tax it.
But don’t worry, like others, you’ll also be eligible for any tax returns so remember that it's important to keep track of these proceeds and payments.
Do you have fishing boat proceeds annually? Do you also agree that fishery deserves its particular way of income? Maybe you want to share some tips on you fishing business or just want to share some great fishing stories? Put them in the comments below! Happy fishing everyone!