US yacht crew can qualify for the Foreign Earned Income Exclusion (FEIE) which is a tax exemption for US citizens who live and work overseas. The FEIE provides the opportunity to claim 100% tax relief on the first $101,300 earned in 2016. The amount of income which tax relief can be claimed on increases annually in line with inflation. However, before you invite all the crew forward for a party in the focsle and announce your resignation; the IRS require you to meet certain conditions to qualify for this exemption.
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Disclaimer: This product was written to be used as a guide. If you wish to confirm if you qualify for the FEIE please contact your accountant or Marine Accounts.