While working remotely from a cruise ship, the IRS still requires taxes to be paid.

• As a U.S. citizen or permanent resident, you are subject to U.S. income taxes on your "worldwide income," regardless of where you earn it, whether it's from a ship or another country.
• Taxes get more complicated if you disembark and work in a different country.
• Casino prizes won on board are also subject to federal income tax.

Last year, Jenny Hunnicutt undertook an unconventional travel journey that she had never experienced before.

In December, a Florida-based writer and consultant embarked on a 274-night cruise aboard Royal Caribbean's Serenade of the Seas, which traveled around the world. The trip, which gained popularity on TikTok, provided an opportunity for remote workers like Hunnicutt and her husband in the post-pandemic world.

"We have become accustomed to the remote lifestyle. We have been traveling on and off for the past three years," she stated. "Since most of my work is in Eastern time, I often have to meet in the middle of the night, but it's all just part of the job."

What are the tax implications for Americans earning income while working on a cruise ship in international waters?

When you die, what happens to your student loan debt? The Federal Reserve sets the stage for a rate cut, which means what for your money? Economist says that housing affordability is moving in the right direction.

Income made 'worldwide' is taxable

Although a Bahamas flag is displayed on the Serenade of the Seas, American cruise workers earning money while working from the ship are still required to pay U.S. federal income taxes, according to experts.

As a U.S. citizen or permanent resident, you are subject to U.S. income taxes on your "worldwide income," regardless of where you earn it, such as from a ship or another country.

That means filing taxes was pretty normal for Hunnicutt and her husband.

"My consulting business is based in Florida, and all my remote work takes place there," she stated. "Nothing has changed for us."

However, leaving the boat and working remotely could potentially trigger tax issues.

Jane Mepham, founder of Elgon Financial Advisors in Austin, Texas, who specializes in international planning, stated that working from another country is a completely different thing.

If you are a U.S. citizen or permanent resident working abroad, you will still be subject to U.S. income taxes, but you may also face tax liability in that country based on its laws and the length of your stay, she explained.

Before leaving for a trip, it's advisable to consult with a cross-border tax professional to ensure that you are aware of any income tax collection requirements in the destination country.

Experts suggest that cruise passengers are unlikely to meet the requirements for the foreign earned income exclusion or foreign tax credit to avoid double taxation, as some expats qualify for.

Gifts can become 'taxable income'

For some self-employed cruise passengers, income could come in different forms.

Joe Martucci, a retired certified public accountant who lived abroad for 16 years, offered tax advice to influencers on board who were monetizing content posted about the trip.

"The gifts given to the influencers by an Australian company are considered taxable income because they were asked to showcase the gifts on TikTok."

Passengers 'surprised' by taxes on casino winnings

According to experts, federal income taxes apply to casino prizes won aboard a cruise for both U.S. citizens and permanent residents, regardless of the location of the boat when the jackpot is hit.

James Border, a Florida-based certified public accountant and attorney who specializes in maritime tax law, stated that some individuals might be taken aback by their future tax bill.

Form W2-G is typically issued by casinos and must be reported on your tax return. However, gambling losses cannot be deducted unless you itemize tax breaks and maintain accurate records, as per the IRS.