Getting Casino tax refund for Canadians can be tough but it is possible
Posted by juliabennet on May 18th, 2012
Taxes are always big issues for everybody. There is always that concern of getting cornered by the IRS for something that we failed to declare. One such thing would have to be our gambling winnings. Casino games and betting activities can be very promising if you are lucky, but no matter what, you cannot escape the reality that you have to declare your winnings as a form of income. Thus, the IRS releases IRS forms specifically for gambling related winnings. Non US players, like Canadians and other nationalities are also required to declare taxes for their winnings when they play in US casinos and betting venues.
The IRS forms for gambling related winnings
This form is also called as Form W-2G, or Certain Gambling Winnings. This is a report of your gambling wins and the federal income tax that are withheld on such winnings. The requirements for the report and the withholding taxes vary from the kind of gambling activity that you participated in as well as the amount of winnings that you won. There is also a consideration based on the ration of the winnings to your wager. Any gambler has to file the W-2G with IRS.
In terms of gambling types, there are two particular categories to consider. First, category is for racing activities, Jai Alai a well as other gambling activities not discussed in other categories. The second category would be for sweepstakes, Lotteries, and wagering pools. Third category is for slot machines, keno and bingo. Finally, the last category is for poker tournaments.
The IRS forms specify the amount of winnings that are subject to taxes. Wagers that are 300 times the amount of the wager are required for taxes, as well as amounts $600 or more. Depending on the game, there are also specific price requirements to consider.
Foreign individuals
Canadians and other nationalities are also required under the US law to pay taxes for gambling related winnings but are not subject to the same kind of rule as with US citizens. They are not subject to the IRS forms W-2G. Instead, the payments are subject to withholding tax amounting to 30%. This is under the sections 1441(a) and 1442(a). This tax is reported using Form 1042 which is the annual withholding tax return for US Source Income for foreign nationals as well as the 1042-S which is the Source Income that is subject to withholding.
Casino tax refund for Canadians
In the past, it has been difficult for Canadians to attempt to recover the casino taxes in US casinos. A lot of Canadians were unaware that they have the right to recover these taxes from the casinos. Some may know that it is possible to get Casino tax refund for Canadians but they just find it too tedious to waste their time. There is always hope for those who want to get their tax refunds. Thanks to the US-Canada Tax Treaty, it is now possible for Canadians to get gambling tax refund. Sadly, it is not an easy task at all. Canadians are subject to leave their passports to the IRS for a month to verify the individual. If you are interested at getting your tax refund, you can do so with the help of certifying acceptance specialists. There are numerous certifying acceptance firms to ensure that the Casino tax refund for Canadians are given to them without much risks and troubles.
Do you want to know how to get Casino tax refund for Canadians? Our company provides top notch tax rebate services to ensure that you do not have to file your own IRS forms and get the refund that you have been waiting for.
