| Canadian Gamblers: US Gambling Taxes Can Be | | | | Acceptance Agent can and will greatly ease the |
| Recovered! | | | | process of obtaining a rebate for your casino winnings |
| Have you won a US casino jackpot, and subsequently | | | | taxes. |
| was hit with the IRS' casino winnings taxes? You | | | | Before Canadian gamblers can apply for a refund of |
| deserve to enjoy your US casino jackpot in full! As a | | | | their casino winnings taxes, they will need an IRS ITIN |
| Canadian gambler, you are eligible for a partial or full | | | | number. Gamblers will receive form 1042-S |
| rebate of your casino winnings taxes. | | | | automatically from the casino when the jackpot is first |
| The Canadian-US tax treaty entitles Canadian | | | | paid. However, many people lose or misplace their |
| gamblers to enjoy the same treatment as US | | | | form 1042-S, and will have to contact the casino for a |
| gamblers. American gamblers are eligible to file for a | | | | copy. If the US casino jackpot winner does not have |
| rebate of their casino winnings taxes when they do | | | | an existing ITIN, an IRS Certifying Acceptance Agent |
| their annual taxes. Yet many Canadian gamblers are | | | | can obtain an ITIN for him/her. |
| unaware of this fact, let alone file for an IRS rebate of | | | | The IRS will levy the casino winnings taxes on certain |
| their casino winnings taxes. | | | | games with several monetary thresholds. For |
| Canadian gamblers with US gambling losses are eligible | | | | example, a US casino jackpot of $1200 USD will have |
| to deduct their US gambling losses against their US | | | | a tax of 30% withheld, whereas a blackjack win of |
| gambling winnings. Anyone with US gambling losses | | | | the same amount will be tax free. In general, table |
| equal or greater than his/her respective gambling win | | | | games do not have the US casino jackpot tax applied |
| will get a rebate for all of his/her casino winnings | | | | to them. Slot machine jackpots of $1200 USD or |
| taxes. Canadian gamblers with fewer gambling | | | | more will have the US casino jackpot applied to |
| losses will get a partial rebate of his/her casino | | | | them. Strangely, while poker and blackjack are |
| winnings taxes. Here's a sample calculation of a | | | | generally not taxed, poker and blackjack tournaments |
| gambling tax refund; our gambler, Martin wins $5000 | | | | ARE taxed. Game show winners are also assessed |
| USD at slots. He is subsequently assessed casino | | | | the casino winnings taxes. Game shows don't have |
| winnings taxes of $1500 (a 30% withholding tax | | | | anything to do with gambling, but they are subject to |
| multiplied by a jackpot of $5000 USD equals $1500 | | | | casino winnings taxes. It does not really make sense, |
| USD). Martin also has corresponding US gambling | | | | but those are the IRS' rules. |
| losses of $6000 USD. Thus he is eligible for a full | | | | You hit the US casino jackpot. You are entitled to |
| rebate of his casino gambling taxes. | | | | enjoy it to its fullest! Contact US Gambling Refund |
| The IRS has difficult and often confounding rules | | | | for more information or to help you reclaim your |
| regarding non-Americans who wish to file US tax | | | | partially withheld US casino jackpot! |
| returns. Yet the services of an IRS Certifying | | | | |