vpFREE2 Forums

Taxes for U.S. citizens/non-residents on jackpots?

#1

Does anybody have any expertise in this area? I was fortunate enough
to hit a royal at Caesar's last week on a $.50 machine. When the
attendant came to pay it, all I had for ID was my Bermuda drivers
license. I told her that I was a U.S. citizen and still paid U.S.
taxes, but she said that without a U.S. ID, I would have 30% deducted
immediately for British taxes. That didn't make sense to me since
Bermuda does not operate under the UK tax structure despite being a
UK territory. But what I ended up doing was getting a "certificate
of win" and coming back later with my passport to get my US tax form
and the full $2000.

So, lesson number 1 is keep the passport handy in case you win a
jackpot! But I am curious if anyone knows how they decide how much
to take out or what happens to that money. If I was living in
England, I would probably have a chance to recoup some of that 30%,
but since I don't file any sort of tax return in Bermuda, I think I
would have been throwing it away. Where would that money have gone,
to the UK? It doesn't make sense to me...

Steve

#2

I am British and as far as I am aware we don't pay any tax on winnings in
the US. I won a Royal at Treasure Island in April and received the whole
amount after producing my British passport.

Is this a new rule?

···

-----Original Message-----
From: larsonsm [mailto:larso…@…com]
Sent: 20 September 2004 19:18
To: vpFREE@yahoogroups.com
Subject: [vpFREE] Taxes for U.S. citizens/non-residents on jackpots?

Does anybody have any expertise in this area? I was fortunate enough
to hit a royal at Caesar's last week on a $.50 machine. When the
attendant came to pay it, all I had for ID was my Bermuda drivers
license. I told her that I was a U.S. citizen and still paid U.S.
taxes, but she said that without a U.S. ID, I would have 30% deducted
immediately for British taxes. That didn't make sense to me since
Bermuda does not operate under the UK tax structure despite being a
UK territory. But what I ended up doing was getting a "certificate
of win" and coming back later with my passport to get my US tax form
and the full $2000.

So, lesson number 1 is keep the passport handy in case you win a
jackpot! But I am curious if anyone knows how they decide how much
to take out or what happens to that money. If I was living in
England, I would probably have a chance to recoup some of that 30%,
but since I don't file any sort of tax return in Bermuda, I think I
would have been throwing it away. Where would that money have gone,
to the UK? It doesn't make sense to me...

Steve

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Yahoo! Groups Links

#3

The best thing is to check the IRS website, it lists the tax treaties between the U.S. and other countries. Some have a withholding tax and some don't .

Regards
A.P.

···

----- Original Message -----
  From: larsonsm
  To: vpFREE@yahoogroups.com
  Sent: Monday, September 20, 2004 2:18 PM
  Subject: [vpFREE] Taxes for U.S. citizens/non-residents on jackpots?

  Does anybody have any expertise in this area? I was fortunate enough
  to hit a royal at Caesar's last week on a $.50 machine. When the
  attendant came to pay it, all I had for ID was my Bermuda drivers
  license. I told her that I was a U.S. citizen and still paid U.S.
  taxes, but she said that without a U.S. ID, I would have 30% deducted
  immediately for British taxes. That didn't make sense to me since
  Bermuda does not operate under the UK tax structure despite being a
  UK territory. But what I ended up doing was getting a "certificate
  of win" and coming back later with my passport to get my US tax form
  and the full $2000.

  So, lesson number 1 is keep the passport handy in case you win a
  jackpot! But I am curious if anyone knows how they decide how much
  to take out or what happens to that money. If I was living in
  England, I would probably have a chance to recoup some of that 30%,
  but since I don't file any sort of tax return in Bermuda, I think I
  would have been throwing it away. Where would that money have gone,
  to the UK? It doesn't make sense to me...

  Steve

[Non-text portions of this message have been removed]

#4

Hi there,

I got dealt a Royal on 10-play nickels and won $2,000 about 3 years ago. I live in Canada. The casino deducted 30% in taxes from my $2,000 because I did not have a US address. (I do have a social security number because I worked in the US for a brief period of time). I filed a 1040NR income tax return (downloaded it from the web).

I had received a W2 (or something with a name like that) in the mail from the casino and I recorded the $2,000 on the appropriate line in the income tax return (as noted on the W2). I then wrote the statement "Losses exceed winnings". I mailed the tax return it to an address in Philidelphia, US. (that is where non-residents must sent their tax returns). A few weeks later I received a cheque (check) for $600 and have never heard from them since.

I made no mention of my winnings on my Canadian income tax return because Canada does not tax winnings or inheritances. Lobby your congressman for this-It sure makes life simpler.

Myra

···

On 20-Sep-04, at 11:18 AM, larsonsm wrote:

Does anybody have any expertise in this area? I was fortunate enough
to hit a royal at Caesar's last week on a $.50 machine. When the
attendant came to pay it, all I had for ID was my Bermuda drivers
license. I told her that I was a U.S. citizen and still paid U.S.
taxes, but she said that without a U.S. ID, I would have 30% deducted
immediately for British taxes. That didn't make sense to me since
Bermuda does not operate under the UK tax structure despite being a
UK territory. But what I ended up doing was getting a "certificate
of win" and coming back later with my passport to get my US tax form
and the full $2000.

So, lesson number 1 is keep the passport handy in case you win a
jackpot! But I am curious if anyone knows how they decide how much
to take out or what happens to that money. If I was living in
England, I would probably have a chance to recoup some of that 30%,
but since I don't file any sort of tax return in Bermuda, I think I
would have been throwing it away. Where would that money have gone,
to the UK? It doesn't make sense to me...

Steve

vpFREE Links: http://members.cox.net/vpfree/Links.htm

Yahoo! Groups Links

#5

Looking at popping down to LAS the week before Christmas, when nobody's
in town and the resorts have to mark down prices...anybody's opinion as
to the most spectacular hotel that you can afford to stay at that week
(did the Luxor a few years ago--really great)

All responses appreciated

"A Little Less Conversation, A Little More Action, Please"
Elvis Presley, 1968

#6

I will also be in LV about that time. Since the Hilton no longer seems to be sending me room offers, I would also be interested in hearing opinions of where I should stay.

thanks
carlos

···

BlackjackBrian <blackjackbrian@shaw.ca> wrote:
Looking at popping down to LAS the week before Christmas, when nobody's
in town and the resorts have to mark down prices...anybody's opinion as
to the most spectacular hotel that you can afford to stay at that week
(did the Luxor a few years ago--really great)

All responses appreciated

"A Little Less Conversation, A Little More Action, Please"
Elvis Presley, 1968

vpFREE Links: http://members.cox.net/vpfree/Links.htm

Yahoo! Groups Links

[Non-text portions of this message have been removed]

#7

I will also be in LV about that time. Since the Hilton no longer

seems to be sending me room offers, I would also be interested in
hearing opinions of where I should stay.

More of an FYI than anything: I've had very minimal play at the LVH
(before and after Caesar's) and today I received a December 1-29
offer which is get a second night free with the purchase of one night
at $75. It's not valid 12/10 & 11.

Drew

···

--- In vpFREE@yahoogroups.com, Carlos Lebron <calebr0n@y...> wrote:

#8

I have no advice where to stay but you should be aware that many shows
and good restaurants will be closed that time of year. Of course most
of the VP machines will still be open. :wink:

Rick

I will also be in LV about that time. Since the Hilton no longer

seems to be sending me room offers, I would also be interested in
hearing opinions of where I should stay.

···

--- In vpFREE@yahoogroups.com, Carlos Lebron <calebr0n@y...> wrote:

thanks
carlos

BlackjackBrian <blackjackbrian@s...> wrote:
Looking at popping down to LAS the week before Christmas, when nobody's
in town and the resorts have to mark down prices...anybody's opinion as
to the most spectacular hotel that you can afford to stay at that week
(did the Luxor a few years ago--really great)

All responses appreciated

"A Little Less Conversation, A Little More Action, Please"
Elvis Presley, 1968

vpFREE Links: http://members.cox.net/vpfree/Links.htm

Yahoo! Groups Links

[Non-text portions of this message have been removed]