Caught something on the Replay marathon regarding Dane

[Belowdeckchatter]

After he got his first tip he was saying that the money was tax free.

 

Then at the end the Captain was saying it was a good season and they racked in over 150,000 in tips.

 

I was wondering if tip income has to be reported or not?

Edited March 24, 2016 by Belowdeckchatter

[tinaw]

Since they got cash and not checks dane probably figured the money was tax free. I don't think technically it is

[nenya]

Money earned abroad is taxed at a different rate. I think it is tax free until about 90k, then you have to pay US income tax on anything over that. I don't remember the rules, but I do remember looking into this at an offer to work in an international location. They were justifying a lower pay scale this way.