Canadian gamblers pay the United States IRS gambling tax, yet are entitled to receive a casino tax refund.
Canadian gamblers obviously love to venture to the United States for gambling. Apart from the stage shows and the buffets, the United States casinos are obviously the largest and most enticing draw. All gamblers inevitably aim to win big, and many will eventually hit the jackpot. Gambling jackpots in the United States are assessed the Internal Revenue Service, or IRS gambling tax.
30% IRS Gambling Tax On Your Jackpot
The IRS gambling tax is set at 30% of the jackpot. The IRS gambling tax takes effect at $1200 for slot machine jackpots and for bingo jackpots. The IRS gambling tax takes effect at $1500 for keno jackpots. There are generally no casino taxes for table games, like roulette, blackjack, and poker. The casinos have argued that the IRS gambling tax would be just too difficult to impose on these games. However, the IRS gambling tax is imposed on table game tournaments, e.g. poker tournaments. The reasoning behind this is that the tournaments have both larger winnings from gambling, and the people competing at the tournaments all have documented identities. Thus it’s just easier to impose the IRS gambling tax on the tournament winners.
Casino Taxes On Canadians
There are no casino taxes in Canada. Unfortunately, casino taxes are a fact of life in the United States. Canadians gambling in the United States are charged casino taxes as well.
Casino Tax Refund
American jackpot winners may be charged the IRS gambling tax, but these casino taxes can be reduced or eliminated via a casino tax rebate. Simply put, a persons gambling wins can be offset by his/her corresponding gambling losses. If the gambling losses are lower than the gambling wins, a partial casino tax refund occurs. If the gambling losses are as high as or higher than the gambling wins, a full casino tax refund occurs. Each year, millions of US taxpayers claim their gambling losses against their gambling wins, resulting in a casino tax refund.
Were Canadians! We dont file US taxes. Can We still Obtain a US Casino Tax Refund?
Under the USA-Canada Tax treaty, Canadian gamblers are entitled to equal tax treatment as their American gambling counterparts. Canadians can theoretically apply for the US casino tax rebate as well. Unfortunately the IRS makes few provisions for non-Americans to file US tax refund applications (including applications for the refund of IRS gambling tax). Think of it, why would the IRS make an effort to make things easier for non-Americans to apply for a US casino tax rebate? There are numerous stories of diligent Canadian gamblers attempting to receive a casino tax rebate, and dealing with the IRS themselves, but coming away frustrated. Canadians attempting to receive a casino tax refund have often been asked to prove their citizenship by sending in a valid, ORIGINAL passport. A potential casino tax rebate is given in exchange for valid travel documents?
The Easiest Way to Receive a Casino Tax Rebate
Largely in response to complaints, the US government has licensed certifying acceptance agents to act on behalf of non-residents, including Canadians in their dealings with the IRS. Certifying acceptance agents have been verified to have the requisite professional knowledge and reliability to pursue the largest, most thorough, and most timely casino tax rebate.