Canadian Us Casino Tax Refund
Answer 51 of 110: I won 5000 usd. Casino deducted 1700 tax paid me approx 3300usd I don't have any losses to offset my win. Can I get the tax I paid refunded? United States on the dividend income (15%) rather than 30%, and Canada generally allows you to deduct the U.S. Withholding tax from your Canadian tax on that income. However, you still need to file a U.S. Income tax return and report your worldwide income, and pay any residual tax to the United States, to the extent it exceeds. Q I'm a Canadian citizen who likes to make occasional trips to casinos in the U.S. Recently, I won $12,856 at keno. The casino withheld 30 percent of my winnings for U.S. Income tax, and didn't allow for the fact that I was down $300 on the day and had the tickets to prove it. 'Generally, you must file a tax return to claim a refund of withholding. Gambling winnings by nonresidents of the U.S. Are taxed at a flat 30% tax rate. However, under the U.S./Canada Tax Treaty, residents of Canada may claim gambling losses, but only to the extent of gambling winnings. We help Canadians and other International visitors to the United States claim their casino tax refund on the 30% gambling winnings tax US casinos and other gaming venues are required to withhold.
U.S. Gambling Tax Recovery
Author: Brad Howland
First Posted: Jan. 2, 2007
Canadians who gamble in the United States may find that 30% of their winnings are withheld to cover U.S. non-resident's tax. Under certain circumstances, this tax can recovered by filing a U.S. tax return.
The IRS requires casinos and other gambling establishments to withhold 30% of the gambling winnings of Canadian visitors to the U.S. However, if you also have U.S. gambling losses during the year, it is possible to file a 1040NR return, deduct those losses from your winnings, and receive a refund of the tax withheld. You must have received 1042-S forms (or W-2G forms) from the gambling establishments showing income and tax withheld, and you must be a U.S. non-resident, for this procedure to work.
You must also have records to substantiate your losses. The IRS provides the following guideline on their website: 'It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.'
Your diary should record the date, location, and type of your gambling activities, as well as amounts won or lost. These records do not have to be submitted with the tax return, but must be available if requested by the IRS.
If you have winnings from blackjack, baccarat, craps, roulette, or big-6 wheel, and the casino gave you Form 1042-S showing that tax was withheld, you don't require gambling losses to claim a full refund of the tax.
The tax refund is obtained by following two basic steps:
My State Tax Refund
1. Obtain an ITIN Number
If you do not have a U.S. Individual Taxpayer Identification Number (ITIN) you need to apply for one by submitting Form W-7 to the IRS along with your tax return. The application process requires you to submit certain documents as proof of identity and foreign status:
IRS has streamlined the number of documents the agency will accept as proof of identity to obtain an ITIN. There are now 13 acceptable documents.
An original, or a certified or notarized copy, of an UNEXPIRED passport is the only document that is accepted for both identity and foreign status. If you do not have a passport, you must provide a combination of current documents that contain expiration dates - we accept docs issued within 12 months of the application if no expiration date is normally available. The documents must also show your name and photograph, and support your claim of foreign status.
IRS will accept certified or notarized copies of a combination (two or more) of the following documents, in lieu of a passport:
- National identification card (must show photo, name, current address, date of birth, and expiration date)
- U.S. driver's license
- Civil birth certificate
- Foreign driver's license
- U.S. state identification card
- Foreign voter's registration card
- U.S. military identification card
- Foreign military identification card
- Visa
- U.S. Citizenship and Immigration Services (USCIS) photo identification
- Medical records (dependents - under 14 years old - only)
- School records (dependents and/or students - under 25 years old - only)
(Source)
Naturally, you probably don't want to send original copies of your documents to the IRS. Although it possible to send certified or notarized copies, there is a catch: copies must be certified by the 'issuing agency or official custodian of the original record,' or 'notarized by a U.S. notary public legally authorized within his or her local jurisdiction to certify that the document is a true copy of the original.' For Canadian residents who don't want to travel to the United States just to find a notary, U.S. notaries public are available at U.S. embassies and consulates in Canada.
In our practice we have used the notary services available at the Vancouver Consulate General, with good success and a reasonable turn-around time. However, it may be more convenient for you to drop into the nearest Canadian passport office and have them make a certified copy of your passport. At the time of this writing, it is free and seems to take about a week to get ready.
Alternatively, if you don't want to go through the somewhat onerous process of applying for an ITIN by yourself, you can use an official IRS 'Certifying Acceptance Agent.' An Acceptance Agent is authorized by IRS to assist individuals in obtaining ITINs, and will probably charge a fee for the service provided. The IRS posts a list of Acceptance Agents on it's website. The list is updated quarterly, and many are located in Canada.
2. Prepare the 1040NR Return
ITIN applications on Form W-7 are required to be submitted to the IRS with the tax return as an accompanying attachment, along with the necessary original, certified or notarized documents (as above). Your package is sent to the Austin, Texas mailing address at:
Internal Revenue Service
Austin Service Center
ITIN Operation, P.O. Box 149342
Austin, TX 78714-9342
In general you can expect it to take at least three-four months to process your return and refund. It is acceptable to file 1040NR returns and claim refunds for the previous three years. We provide Form W-7 and 1040NR preparation services for $300, plus 12% HST and shipping.
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Gambling Income and Expenses
Are You Entitled To a Casino Tax Refund?
Suppose you are a Canadian visiting the United States to do some gambling in Las Vegas, and have just won big at the casino. The first thing you might notice once the euphoria of winning has faded is that the casino has just withheld 30% of the money you won to pay US gambling taxes – even though you’re not a US citizen. What you might not realize at this juncture is that you can obtain a refund on these gambling taxes, provided you can prove that you’re both a resident and a citizen of Canada. A tax recovery firm can help you collect this tax refund, which can work out to a great deal of extra money in your pocket.
Any time you win more than $1200 at a legal casino in the US, the casino will withhold the percentage of the money paid in taxes directly from the winnings. As they have neither the time nor the resources to determine who is and is not actually obligated to pay the US gambling tax, they will do this regardless of whether or not the winner is a US citizen. The casino will issue you a win slip, which will indicate both how much money was won, and how much was withheld in taxes. It’s a good idea to hang on to this win slip, as you may be able to recover most or all of the taxes paid.
Many Canadians gambling in the US simply take their winnings, less the tax, and are happy with it, if not quite so happy as they might have been. Many don’t realize that they may be able to recover that money, let alone what the first step in the recovery process would be. However, if you contact an online tax recovery service, and meet the criteria for obtaining a refund, they can help you to go through the proper channels, and simplify the process of filling out forms, proving your residency, and furnishing the IRS with the documentation detailing the amount of money lost to US gambling taxes. While the firm you engage may require that you pay a fee for their services, it will only be a small percentage of the money you will recover via the casino tax refund.
Canadian Us Casino Tax Refund 2019
Resource: If you are Canadian and won money gambling in the US, you may be entitled to a gaming tax recovery. The casino winnings tax is available for recovery by legal residents of other countries who paid this tax on gaming winnings in the United States. Find out more about casino tax refunds and the process by which they are obtained by visiting US Tax Recovery.