Gambling and the IRS

Based on the Canada / US Tax Treaty, Canadians are subject to a 30% withholding tax on their gambling or lottery winnings. As a result of the treaty Canadians are also able to recover all or a portion of the taxes paid on their gambling winnings. However Canadians are required to substantiate their gambling losses. The amount of your refund is based on the amount you have won and lost in the United States throughout the calendar year. It’s a good idea to keep a diary or log book that tracks the following information:

  • Date and type of gambling activity or wager you placed
  • Name and address of the place you gambled
  • Names of other persons that were with you while you gambled
  • Amount you won or lost

There are several ways of keep track of your gambling losses.

  • Casino player’s card.
  • Bank or ATM slips showing withdrawals from your account.
  • Wagering tickets or slips
  • Checks and bank statements
  • Statements showing your winnings or receipts showing your payments that were issued by the gambling establishment.

The best way to keep track of your losses is to use a Casino Player’s Card that you insert into the slot machines. Using a Players Card will help keep track of your winnings and losses at that specific casino for a given year.

At the end of the year the casino(s) you had attended, will mail you a copy of your win/loss statement. This statement will provide a summary of your gambling winnings and/or losses.

If you are a Poker player keep the receipts of the buys during a Poker Tournament and note the wins and losses within the US.

It’s like winning all over again with US Tax Recovery.