Filing Casino winnings taxes is a requirement but should not be a chore

Posted by juliabennet on May 18th, 2012

Winning through gambling can be a superior form of money making. The stakes are high and if you win a considerable amount of money, you get to enjoy the prestige it offers. For those who win the lottery or maybe slot machines, the prizes can be extremely rewarding. However, for Canadians and other nonresidents playing casino games in the US, there is an obligation that you have to address: paying the Casino winnings taxes. That means you cannot escape your tax obligations in the US even if you are Canadian or other foreign nationality. Understanding your tax obligations is necessary. It is ideal to begin somewhere, such as filing the 1040NR form and other obligations.

Understanding the 1040NR form
If you know your taxes that mean you have the capacity to know how to take advantage of aspects like tax returns and other stuff. The 1040nr Form is a long form that you have to use when filing for Casino winnings taxes. According to the law, gambling winnings are fully taxable and you use the Form 1040 in order to pay those taxes. These taxes are normally done already by the casino. For Canadians and other specific foreign entities, they have to use the 1040NR unless otherwise required. The gambling income could come from a wide variety of options like poker tournaments, horse races, raffles and casino winnings. For nonresident gamblers, they do not have the option for itemized deductions and are subject to 30% withholding tax.

Preparing the 1040 NR form
It is necessary that you fill out the form complete with all the necessary, relevant details. Filling the form can be tedious and so it is ideal that you fill it out as early as you can so that you won’t be in trouble with it when the time for filing comes. Ideally, you should get the help from a professional for your Casino winnings taxes. This is to ensure that you are not overlooking important aspects for your payments.  If you want to get returns, you have to provide certified and notarized IDs and proof of gambling losses as well as other documents.

Paying your taxes is very vital especially if you are a constant gambler and you always head to the US for gambling opportunities. The tax options for US non-residents are limited and that puts them at a disadvantage on the Casino winnings taxes. Depending on the amount they get, the tax they pay is high. The good news is that they can qualify for a Casino winnings taxes refund. It can be very tedious to ask for a refund especially with the requirements and rules set by the US but there are services available so that you can have your ITIN application moving forward and that you can get Casino winnings taxes.

Learning about taxes could be one of the best solutions so that you can enjoy the benefits of refunds. In the long run, if you constantly visit the US to gamble, it would be ideal to know that while you are required to file your taxes for gambling winnings, you can also take advantage of refunds to get some of your money back.

While it is a fact that you have to pay casino winning taxes, that is not to say gambling has become a chore. We offer services so that you can get your well-deserved refunds for the taxes. Visit our site to learn about 1040nr form and other facts about gambling taxes.