Just hit my first $1 royal in Vegas and was surprised to learn that
$1200 was withheld. How hard is it to get this money back and what is
the best way to go about it? The slot attendant informed it was a real
simple process but everything I read regarding it is quite
overwhelming.
Canadians and recovering 30% tax on jackpots
It is simple but at first a little time consuming. When you go home to Canada go to the
nearest US Embassy or Consulate and apply for a tax registraition number. You will have to
fill out a form,show I.D. and have the form notarised at the US Embassy or Consulate to
complete the application.There will be a fee (I did this six years ago and back then it was
$25.00) and once completed and sent, you should receive a Tax number four to six weeks
later. Once you have received it, get a 1040NR tax return that you can download from the
IRS online.
Complete the tax return (full instructions accompany it and it is simpler than one
imagines) and send it off with copies of the 1042-S forms you received to show that tax
was deducted from your win. For my first time I hired an accountant to fill out the 1040NR
form for me and it took him less than ten minutes. Ever since then I have used the first
form as my model for every subsequent form I have filed.
The alternative is to go to one the "accountants" that specialise getting Canadians their
deducted winnings back by charging them an exorbitant fee for the service.
Believe me when I say the longest part of the process was the wait at the Embassy to get
my form notarised.
I hope this helps.
MO
···
--- In vpFREE@yahoogroups.com, "deleuzeguattari68" <rhizomatic@...> wrote:
Just hit my first $1 royal in Vegas and was surprised to learn that
$1200 was withheld. How hard is it to get this money back and what is
the best way to go about it? The slot attendant informed it was a real
simple process but everything I read regarding it is quite
overwhelming.
Here is an excerpt from the IRS website. It really is a fairly simple, straightforward procedure..
a.. I won money at a Las Vegas casino and my winnings were subject to a 30% withholding tax. I am a Canadian citizen. How can I get the withholding tax back?
Generally, you must file a tax return to claim a refund of withholding. Gambling winnings by nonresidents of the U.S. are taxed at a flat 30% tax rate. However, under the U.S./Canada Tax Treaty, residents of Canada may claim gambling losses, but only to the extent of gambling winnings. You should report both your total gambling winnings and your total gambling losses on page 4 of Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return on the dotted portion of line 79. If you have net gambling winnings (after offsetting your total losses against your total winnings), you should include this net amount on line 79, column (d) of the Form 1040NR. You should also attach a copy of the Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, showing the taxes withheld to your Form 1040NR.
A diary of your losses should be kept for your records.
To file a Form 1040NR you must have a valid identification number. For most people this is a social security number (SSN). However, if you do not have and cannot obtain a SSN you may use an Individual Taxpayer Identification Number (ITIN). If you do not have an ITIN you may apply by filing Form W-7 (PDF), Application for IRS Individual Taxpayer Identification Number. Along with the completed Form W-7, you must submit document that verify both your identity, that is, contain your name and a photography, and your foreign status. If you have one document that verifies both, such as a passport, then one document is enough. You may, however, have to provide a combination of documents, for this purpose.
References:
a.. Publication 515 (PDF), Withholding of Tax on Nonresident Aliens and Foreign Corporations Publication
b.. Publication 519 (PDF), U.S. Tax Guide for Aliens
c.. Publication 597 (PDF), Information on the United States-Canada Income Tax Treaty
d.. Publication 901 (PDF), U.S. Tax Treaties
e.. Form W-7 (PDF), IRS Application for Individual Taxpayer Identification Number
f.. Form 1040NR (PDF), U.S. Nonresident Income Tax Return
g.. Publication 1915 (PDF), Understanding Your IRS Individual Taxpayer
Regards
A.P.
[Non-text portions of this message have been removed]
withholding. Gambling winnings by nonresidents of the U.S. are taxed at
a flat 30% tax rate. However, under the U.S./Canada Tax Treaty,
residents of Canada may claim gambling losses, but only to the extent
of gambling winnings.
···
--- In vpFREE@yahoogroups.com, "Albert Pearson" <a-p@...> wrote:
Generally, you must file a tax return to claim a refund of
======================================
That is great information AP. I am curious about the US/Canada Tax
Treaty. Is Canada the only country with the same treaty? What about
Europeans or Asians? Do they just suck it up and pay 30%?
Also, once you have your ITIN number, why not supply that to the slot
attendant and avoid the entire 1040NR hassle?
--- In vpFREE@yahoogroups.com, "deleuzeguattari68" <rhizomatic@...>
wrote:
Just hit my first $1 royal in Vegas and was surprised to learn that
$1200 was withheld. How hard is it to get this money back and what
is
the best way to go about it? The slot attendant informed it was a
real
simple process but everything I read regarding it is quite
overwhelming.
My wife and I both had to get a number and my process proved much
easier by going to the tax office in Vegas with my documents. It took
about ten minutes.
Great!
Do you mean you were able to get your Tax Number in Vegasand just file the documents for
it there?
If that is the case I wish it had been that simple for me way back when I got mine.
I wish one could just give the slot attendant one's Tax number and have done with it, but
apparently without a social security number one cannot or so I was told.
MO
···
My wife and I both had to get a number and my process proved much
easier by going to the tax office in Vegas with my documents. It took
about ten minutes.
Great!
Do you mean you were able to get your Tax Number in Vegasand just
file the documents for
it there?
If that is the case I wish it had been that simple for me way back
when I got mine.
I wish one could just give the slot attendant one's Tax number and
have done with it, but
apparently without a social security number one cannot or so I was
told.
MO
> My wife and I both had to get a number and my process proved
much
> easier by going to the tax office in Vegas with my documents. It
took
> about ten minutes.
>
They sent me the tax number later and I still had to wait until
January to file for the refund.
···
--- In vpFREE@yahoogroups.com, "mofromto2" <mofromto@...> wrote:
The U.S. has treaties with almost all countries, the individual treaties determine the withholding tax. A friend of mine from Italy pays no withholding tax.
The Canadian treaty has been changed in the past few years to make the process of recovering the withholding tax for Canadians much easier.
I obtained my ITIN number a few years back. I filled out the forms in Canada and did the processing in the Las Vegas IRS office. The process takes 10 minutes to fill out the
form and 5 minutes to process it (the office was busy that day and I waited about 1/2 hour). I received my ITIN in about 3 months.
You do supply your number if you get hit with a taxable win and that puts your number on the information slip, and makes it easier for you to claim your refund, but the casino is still
required to take the withholding amount.
If like myself you play in the casinos that don't see many NRA's (Non Resident Aliens - love that term), then they may screw up as has happened twice to me, and they will give you
a W2G form just like the locals and not take a withholding tax. In this case I still file a return at the end of the year so that the IRS can balance the books and not get upset with me for not filing a return. Since you only have to pay tax on the net profits, you will usually get your money back.. A friend of mine used one of the refund service companies, and they took a % 50 cut.
Regards
A.P.
···
----- Original Message -----
From: emailscot
To: vpFREE@yahoogroups.com
Sent: Sunday, February 19, 2006 12:54 AM
Subject: [vpFREE] Re: Canadians and recovering 30% tax on jackpots
--- In vpFREE@yahoogroups.com, "Albert Pearson" <a-p@...> wrote:
That is great information AP. I am curious about the US/Canada Tax
Treaty. Is Canada the only country with the same treaty? What about
Europeans or Asians? Do they just suck it up and pay 30%?
Also, once you have your ITIN number, why not supply that to the slot
attendant and avoid the entire 1040NR hassle?
[Non-text portions of this message have been removed]