U.S. Casino Tax Refund
- Thread starter alan9080
- Start date
I looked into this a long time ago before a trip to vegas and remember reading that you just have to fill out a form. The companies that do it are just filling that out on your behalf and taking a cut. Sort of like H&R with your tax refund. If you're comfortable with filling out that sort of paperwork I would just do it myself. However I never won so I didn't pursure it further. Others may have first hand knowledge.
Just poking around - no personal experience
This seems to be a good overview http://www.casinotaxrefunds.info/
Summary of instructions http://www.irs.gov/instructions/i8233/ch02.html
Form and instructions online http://www.irs.gov/app/picklist/list/formsInstructions.html?value=8233&criteria=formNumber
Funny thing - 2 page form; 4 pages of instructions
This seems to be a good overview http://www.casinotaxrefunds.info/
Summary of instructions http://www.irs.gov/instructions/i8233/ch02.html
Form and instructions online http://www.irs.gov/app/picklist/list/formsInstructions.html?value=8233&criteria=formNumber
Funny thing - 2 page form; 4 pages of instructions
While I haven't done it yet myself, I will need to do it for this taxation year, and so I looked into it a bit.
From what I remember, the withheld tax is refundable assuming you lost as much as you won and had no other US income. So, if you lost $4K over the year and had a $4K win that was taxed, you'd get the full refund. I think you need to keep records of your gambling wins and losses (casinos with player's club cards can provide this yearly for slots), and I think also the time you've spent in the US over the last three years.
The first time you apply you apply for an identification number concurrently with the refund application.
It didn't seem complicated to me, but judge for yourself- http://www.irs.gov/pub/irs-pdf/i1040nr.pdf If that amount of work is worth the 25% the refund companies charge, I'd do it myself. As well, some casinos will give free play when cashing in these government refund cheques (say El Cortez in Vegas, as one example), so you can get another 5% or so from this, up to a certain limit.
The above also assumes you have Canadian citizenship, other countries have better tax agreements where the withholding tax can be refunded (or I guess not collected) on the spot.
From what I remember, the withheld tax is refundable assuming you lost as much as you won and had no other US income. So, if you lost $4K over the year and had a $4K win that was taxed, you'd get the full refund. I think you need to keep records of your gambling wins and losses (casinos with player's club cards can provide this yearly for slots), and I think also the time you've spent in the US over the last three years.
The first time you apply you apply for an identification number concurrently with the refund application.
It didn't seem complicated to me, but judge for yourself- http://www.irs.gov/pub/irs-pdf/i1040nr.pdf If that amount of work is worth the 25% the refund companies charge, I'd do it myself. As well, some casinos will give free play when cashing in these government refund cheques (say El Cortez in Vegas, as one example), so you can get another 5% or so from this, up to a certain limit.
The above also assumes you have Canadian citizenship, other countries have better tax agreements where the withholding tax can be refunded (or I guess not collected) on the spot.
If the 30% is not refunded, I wonder if you can claim it in anyway on your Canadian taxes. You know for when I win the 300 million mega millions.My understanding is that not all of the tax is refundable. For instance, Slot machine winnings are subject to the 30% withholding tax and no refund is available. Some other winnings are eligible for a refund.
The tax laws in the US are different than in Canada.If the 30% is not refunded, I wonder if you can claim it in anyway on your Canadian taxes. You know for when I win the 300 million mega millions.
Lottery and gambling winnings are not taxable in Canada. They are in the States.
So, withholding taxes paid to the US on non-taxable (in Canada) income are not deductible.
However, withholding taxes paid on such things as US dividends are claimable on Canadian tax returns because the US dividends are reportable income on a Canadian tax return.
Would you know off hand if the US refunds the withholding tax for Canadians. Again for when I win the 300 million megamillions. Something I've always wondered.The tax laws in the US are different than in Canada.
Lottery and gambling winnings are not taxable in Canada. They are in the States.
So, withholding taxes paid to the US on non-taxable (in Canada) income are not deductible.
However, withholding taxes paid on such things as US dividends are claimable on Canadian tax returns because the US dividends are reportable income on a Canadian tax return.
Slot machine winnings ARE refundable. Won over the last couple of years at slots and used American Tax Refund Corporation in Toronto. They have a flat fee of $150, so I guess it may depend on how much you won if you want to use them.. Was simple and easy.www.americantaxrefund.comMy understanding is that not all of the tax is refundable. For instance, Slot machine winnings are subject to the 30% withholding tax and no refund is available. Some other winnings are eligible for a refund.
