Gross income from fishing includes amounts you receive from catching, taking, harvesting, cultivating, or farming any of the following aquatic resources.

• Fish.
• Shellfish (such as clams and mussels).
• Crustacea (such as lobsters, crabs, and shrimp).
• Sponges.
• Seaweeds.
• Other aquatic forms of animal or vegetable life.

You generally figure your gross income from fishing in Part I of Schedule C (Form 1040). For more information on Schedule C, see What Forms Must You File, later.

Wages. Wages you receive as an employee in a fishing business are not gross income from fishing.

If you work on a boat with an operating crew that is normally made up of fewer than 10 individuals, you may be considered a self-employed individual instead of an employee. As a self-employed individual you may receive gross income from fishing. For more information, see Which fishermen are considered self-employed? under Form 1099-MISC, later.

Patronage dividends. Patronage dividends you receive from your fishing business activities are generally included in your gross income from fishing. However, do not include in gross income amounts you receive from a cooperative association relating to the purchase of capital assets or depreciable property used in your fishing business. Reduce the basis of these assets by the dividends received.

Fuel tax credits and refunds. You may have to include fuel tax credits and refunds you receive from your fishing business activities in your gross income from fishing. For more information, see Including the Credit or Refund in Income under How Do You Claim Fuel Tax Credits and Refunds, later.

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