Are You Entitled To a Casino Tax Refund?

Suppose you are a Canadian visiting the United States to do some gambling in Las Vegas, and have just won big at the casino.  The first thing you might notice once the euphoria of winning has faded is that the casino has just withheld 30% of the money you won to pay US gambling taxes – even though you’re not a US citizen. What you might not realize at this juncture is that you can obtain a refund on these gambling taxes, provided you can prove that you’re both a resident and a citizen of Canada.  A tax recovery firm can help you collect this tax refund, which can work out to a great deal of extra money in your pocket.

Any time you win more than $1200 at a legal casino in the US, the casino will withhold the percentage of the money paid in taxes directly from the winnings. As they have neither the time nor the resources to determine who is and is not actually obligated to pay the US gambling tax, they will do this regardless of whether or not the winner is a US citizen. The casino will issue you a win slip, which will indicate both how much money was won, and how much was withheld in taxes. It’s a good idea to hang on to this win slip, as you may be able to recover most or all of the taxes paid.

Many Canadians gambling in the US simply take their winnings, less the tax, and are happy with it, if not quite so happy as they might have been.  Many don’t realize that they may be able to recover that money, let alone what the first step in the recovery process would be.  However, if you contact an online tax recovery service, and meet the criteria for obtaining a refund, they can help you to go through the proper channels, and simplify the process of filling out forms, proving your residency, and furnishing the IRS with the documentation detailing the amount of money lost to US gambling taxes. While the firm you engage may require that you pay a fee for their services, it will only be a small percentage of the money you will recover via the casino tax refund.

Resource: If you are Canadian and won money gambling in the US, you may be entitled to a gaming tax recovery. The casino winnings tax is available for recovery by legal residents of other countries who paid this tax on gaming winnings in the United States. Find out more about casino tax refunds and the process by which they are obtained by visiting US Tax Recovery.