US Casino Tax

Understanding the Process of Casino Winnings Tax Recovery

If you have recently won a sizeable amount in a US casino and have been subject to winnings tax, it is important to learn as much as possible about the US casino tax refund for Canadians. According to the tax treaty between the two countries, Canadians can offset their losses against winnings. While winning any amount in a casino can be very exciting, you will soon be brought back to harsh reality when you realize that 30% of your winnings have been withheld from your winnings as taxes.

However, with knowledge about the US casino tax table games you will realize that there are many lotteries and casino games on which you are eligible to get a refund on these taxes. Some of these games include state lotteries, poker, blackjack, slot machines, keno and bingo. You should know that the entire refund process may take up to 16 weeks. You will need to fill out an ITIN application and submit it to the IRS. This number can be used for gambling refund as many times as you wish. You will also need to file a 1040NR. This is a tax return form which has to be filed by non-US residents for obtaining a refund on casino taxes. 

You will need to keep in mind that refund can only be obtained on an eligible game and that you can offset your losses against winnings in the same year to get the refund. The entire process can be frustrating, lengthy and very confusing. Fortunately, there are a few firms offering US casino tax recovery services. These firms can guide you through the way to obtain a refund and act on your behalf. They will ensure that your refund is maximized and that the process is smooth.