Get Your Gambling Taxes Back From The Internal Revenue Service!
Each year, millions of Canadians travel south and gamble. Thousands of these Canadian gamblers hit US casino jackpots, but are then assessed the Internal Revenue Service’s gambling tax. In Canada, gambling income is considered non-taxable windfall income. Like insurance settlements, gambling income is not taxed in Canada. The Internal Revenue Service however, taxes gambling wins at close to its highest rates. Luckily Canadians are entitled to a withholding tax refund, and Certifying Acceptance Agents can help with the process.
The Internal Revenue Service levies the 30% gambling tax (also known by its official name of the withholding tax) on certain US casino jackpots. In general, slot, keno, lottery, and horse/dog racing wins are included. Table games like poker, roulette, Big 6 wheel, and blackjack are not subject to the gambling tax in general.
There are various thresholds for the gambling tax. Slot machine jackpots, lottery wins, and bingo wins of $1200 USD and over are taxed. Horse and dog racing wins need to be $600 USD above the initial bet, AND at least 300X the initial wager to have the Internal Revenue Service’s gambling tax assessed. Table games are usually exempt from the gambling tax, but table game tournaments are hit with the gambling tax. Thus, if you show up at a casino to play roulette, your gambling wins will not be taxed. If you enter into a roulette tournament and win big, your US casino jackpot will be hit with the IRS’ gambling tax. The Internal Revenue Service is not easy to comprehend, nor are its rules straightforward. But they do levy taxes on US casino jackpots, and Canadians are not exempt from them. Interestingly Canadian contestants on US game shows like “Jeopardy” and “The Price is Right” are subject to the Internal Revenue Service’s gambling tax. Gambling may not be involved, but the game show wins are taxed.
The Internal Revenue Service’s form 1042-S is given to all gambling winners. If you have received an Internal Revenue Service form 1042-s, are a Canadian and a non-resident of the United States; you are eligible to offset your gambling losses against your gambling winnings and get a withholding tax refund. In other words, if you’re a Canadian and have a form 1042-S, you are eligible to get some or all of your gambling taxes back.
United States Gambling Refund has a simplified refund management procedure. First, we help to obtain an U.S. Individual Taxpayer Identification Number (ITIN) for the client. This takes six to eight weeks. Then, based on the provisions of the Canada U.S.A tax treaty, a gambling tax return is filed on behalf of the client. The whole process takes three to four months. United States Gambling Refund is an Internal Revenue Service approved Certifying Acceptance Agent and will greatly streamline the process and ensure the largest possible gambling tax refund.
Contact US Gambling Refund for more information on how to get a withholding tax refund at 1-888-TAX-0TAX (1-888-829-0829).
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About the Author:
Lucky Larry specializes in cross border gambling taxes and has extensive experience dealing with the Internal Revenue Service, gambling refund tax claims and pursuing ITIN numbers on behalf of Canadians and other US non-residents.
