Claiming Gaming & Casino Tax Refunds for Over 20 Years
Both cash and the value of prizes are considered “other income” on your Form 1040. If you score big, you might even receive a Form W-2G reporting your winnings. The tax code requires institutions that offer gambling to issue Forms W-2G if you win: $600 or more on a horse race (if the win pays at least 300 times the wager amount). Note that you cannot subtract gambling losses from your winnings on your Maryland tax return.Answers are correct to the best of my ability but do not constitute tax or legal advice. 0.
Iowa residents who have winnings from gambling in another state may have to file an income tax return with the other state and pay tax on the winnings. These winnings are also taxable to Iowa. However, the Iowa resident may claim an out-of-state tax credit on the IA 130 of the IA 1040 for the tax. Fastest refund possible: Fastest tax refund with e-file and direct deposit; tax refund time frames will vary. The IRS issues more than 9 out of 10 refunds in less than 21 days. Pay for additional TurboTax services out of your federal refund: A $40 Refund Processing Service fee applies to this payment method.
We’ve been claiming gaming and casino tax refunds since 1996. We are Canada’s longest standing withholding tax refund agency. Owned and operated by a Canadian Chartered Accountant, we are also Canada’s top choice for gaming and casino tax refunds.
We offer One Simple Step™ which means we are the easiest gaming and casino tax refund service around. You are only required to sign where indicated, and we file the multitudes of forms required on your behalf.
In order to make the refund process as easy as possible, we have formed relationships with most of the major gambling establishments. These relationships allow us to quickly retrieve your forms in the event that the forms you were issued were lost or damaged.
We Take Care of the Tax Recovery Process with the IRS
We have never been denied a rightful claim by the IRS. Despite this fact, we get customers every year who tried to claim their gaming or casino tax refund another way, often on their own. This decision led to mistakes in their application that caused the IRS to deny their claim.
Once a gaming or casino tax refund claim has been denied, the appeal process is even more complex than the claim. We leverage our special relationship with the IRS to navigate this process and reclaim as much as we can through an appeal.
Casino Tax Refund Form 2019
One-Stop Gaming & Casino Tax Refund Agency
We are not only a gaming & casino tax refund agency, we are also an agent of the IRS. This means we are a one-stop refund agency, allowing you to take care of all the steps required for a gaming or casino tax refund in one place.
Gaming & Casino Tax Refund Eligibility
- You are a non-US resident.
- You have won taxable gaming income from specified gaming activity within the last three years.
- You have been issued an IRS Form 1042-S by the casino (if you have lost or misplaced these forms, we have developed relationships with casinos all across the US and can request them on your behalf).
- You have either a certified a) passport, OR a certified b) driver’s licence AND c) birth certificate
- You have qualified gaming losses (in accordance with the 1996 Canadian/US Tax Treaty).
After Winning How Much Time Do I Have To Get A Refund
The IRS has implemented a three-year filing rule. This rule allows one to go back three years to obtain a refund. Taxes on winnings prior to this period are statute-barred from any recovery. Most of our clients make their claim within days of returning back home. If you have won in the current year, refunds will be claimed at the beginning of the following taxation year.
What You Need to Know About The Tax On American Prize Winnings
Part of having a great time on any American vacation is the excitement of wagering, but before you spend all the money you win in the U.S., remember there’s a tax on prize winnings that goes as high as 30%.
If that number sounds high enough to put you off slot machines and even game shows when you’re down south, remember there are ways to get refunds through reputable Canadian firms that specialize in offsetting the tax on prize winnings you’d otherwise need to pay.
Once you understand that you can get some of that money back, of course you’ll want to know how fast that will happen. You should only deal with companies that are upfront on their websites about the turnaround time that’s often 12 to 15 weeks. Expect to get all the necessary information online like the fact that you can cut down the refund process time with a proper ITIN# and what your responsibilities are in the way of documentation.
Finally, you’ll need to find all the necessary eligibility information so you can proceed to get those refunds on the tax on prize winnings. First and foremost, you need to be a non U.S. resident.
Beat That Game Show Winning’s Tax Rate With RMS
Lots of Canadians and other international players are lured to the United States by the promise of big winnings on the game shows there. Still, contestants don’t always realize that when they win, so does the American tax man through the game show winnings tax rate that’s usually around 30%.
However, there’s no need to fret since a tax recovery company can help you get some of your money back from the Canadian side of the border. Of course you need to be sure the company that you’re considering is professional and knows all about getting you a game show winnings tax rate refund. Making sure they have the necessary experience is often about looking for testimonials on their website and a short and simple application form that helps you to get started.
Reputation and experience go hand in hand with these companies and if the company is founded and owned by someone that knows their stuff like a Chartered Accountant, all the better to get you the refund you deserve.
You need to do your part to get a refund and offset the game show winnings tax rate and a good company will let you know all of the eligibility requirements necessary so the process runs smoothly.
Apply now for free to have Canada’s #1 gaming & casino tax refund agency handle your refund.
Las Vegas is one of the favorite destinations of foreign nationals visiting the USA. If the luck strikes, these foreign nationals can win thousands of dollars at casinos. Nonresident aliens or foreign nationals visit the USA for a short time so most of the time foreign nationals are confident about leaving the USA with the entire amount of gambling winnings. However, the IRS has its own set of rules. Nonresident alien might be subject to 30% tax on gambling winnings so it is essential to understand the IRS regulations in regards to gambling winnings tax.
This is an email from one of our clients, a foreign national visiting the USA. “I visited the USA in 2012 for 1 month. Specifically, I was in Las Vegas and won $200,000 at the casino. I cannot even describe how happy I was. However, the casino refused to pay me the entire amount of gambling winning. Moreover, I was assessed 30% gambling winnings tax. I will appreciate if you can clarify whether I can claim this money back. I do not think that gambling winnings tax was legitimate in my case.”
The above situation is quite common. Casinos follow the IRS guidelines, however, there are several ways to avoid or to minimize gambling winnings tax on foreign nationals.
IRS Rules and Gambling Winnings Tax on Foreign Nationals
There are several scenarios that might happen.
Foreign Professional Gambler and Gambling Winnings Tax
Las Vegas is famous for hosting professional poker tournaments and other gambling events. Consequently, foreign professional gamblers can win millions of dollars by participating in these events. If foreign nationals or nonresident aliens are engaged in a US trade or business at any time during the year, then they are taxed at regular US rates. Moreover, the US net taxable income is calculated as a difference between US gross income and all applicable deductions. Pending particular circumstances, these foreign professional gamblers will fall into the category “engaged in a US business”. As a result of it, they will not be subject to 30% withholding gambling winnings tax. However, each situation is unique so it is important to analyze specific circumstances.
A taxpayer can be treated as engaged in a US trade or business if their activities in the US are continuous, regular and substantial rather than sporadic or isolated. If it is considered from the context of gambling, this would mean that the non-resident alien (NRA) is inside of the US often enough to be treated as engaged in gambling activity on a regular basis. The NRA would also have to be in the US long enough to be treated as a resident, and subject to the US tax on worldwide income. This fact is determined by using the substantial presence test, where your physical presence inside of the US is evaluated over a 3 year period.
It may also be possible to obtain the professional gambler status if you were in the US only a few times in the year, if the gambling activity involved a significant amount of money. In this circumstance the quality of the type of gambling could outweigh the quantity, allowing you to be considered a professional gambler for US tax purposes.
Your ability to be able to file a tax return as a professional gambler will make a significant difference in the outcome of your tax due. Winnings can be be offset by your losses, and the net gains are taxed at a graduated tax rate. At the graduated rate you may find that the tax rate imposed is substantially less than the 30% rate imposed by the withholding system. Whether or not you are able to receive this financial benefit on your tax return will depend on how the facts submitted to the IRS are interpreted. So a proper guidance from an expat tax CPA is suggested.
Foreign Nationals and 30% Withholding Gambling Winnings Tax
Foreign nationals with US gambling winnings by accident face a different story. These foreign nationals will be subject to 30% income tax rate or lower tax treaty rate because this income is not effectively connected with US trade or business. Some types of gambling winnings are exempt from this tax. Per the IRS regulations the list includes the following games: blackjack, craps, baccarat, roulette or big six wheel.
Foreign Nationals, Tax on Gambling Winnings and US Tax Treaties
The USA signed an income tax treaty with various countries. Several of these income tax treaties have a provision for the gambling income.
There are select countries which have a tax treaty with the United States (US) that will reduce the 30% withholding tax on gambling proceeds. If you are a resident of one these treaty countries, you only need to present a form to the casino that will prevent any withholding tax from being applied.
The nationals of the following countries are exempt from US income tax on gambling winnings.
- Austria
- Belgium, Bulgaria
- Czech Republic
- Denmark
- Finland, France
- Germany
- Hungary
- Iceland, Ireland, Italy
- Japan
- Latvia, Lithuania, Luxembourg
- Netherlands
- Russia
- Slovak Republic, Slovenia, South Africa, Spain, Sweden
- Tunisia, Turkey
- Ukraine, and the United Kingdom
The form that you need to present is W8-BEN. This form will assist you in claiming the treaty benefits along with your Individual Taxpayer Identification Number (ITIN).
If a a tax was withheld on your gambling earnings, you do have the option of filing a US tax return and request the IRS for a refund. In order to do so, you will need to file Form 1040-NR, once the tax year has been completed.
How to claim a tax treaty rate on gambling winnings of foreign nationals?
Foreign nationals must file the IRS Form 1040NR to claim a tax treaty rate and to minimize the amount of gambling winnings tax. Some other countries have a lower tax treaty on gambling winnings too.
Conclusion
Foreign nationals with gambling winnings are suggested to contact an expat tax CPA that specializes in working with nonresidents with US interests. There are several ways to minimize US gambling winnings tax so it is important to review each individual situation with an expert. International tax experts at Artio Partners are pleased to assist foreign nationals with US interests.