What Is IRS Form 1042-S?
IRS Form 1042-S is the tax document a U.S. casino sends you — and files with the IRS — when it withholds tax from gambling winnings paid to a non-U.S. resident. If you are a Canadian who hit a qualifying jackpot at a U.S. casino, this is the form that records how much you won and how much was kept. It is not a bill. It is a receipt for tax that was already taken from your payout before you left the building.
That withheld amount is not necessarily gone forever. At U.S. Tax Recovery, we use the 1042-S as the foundation of every refund claim we file on behalf of our Canadian clients — recovering the withheld tax directly from the IRS on their behalf.
KEY TAKEAWAYS
- Form 1042-S is issued by U.S. casinos to non-resident winners whose gambling income was subject to withholding.
- It shows your gross winnings and the exact amount of U.S. tax withheld — typically 30%.
- Canadian residents can use the 1042-S to file a U.S. nonresident return and claim a refund under the Canada–U.S. Tax Treaty.
- You must keep this form — losing it delays or complicates your refund claim.
Who Receives a Form 1042-S?
Any non-U.S. resident who receives U.S.-source income that is subject to withholding can receive a 1042-S. For casino players, this means Canadians and other foreign visitors who trigger the reporting threshold on slot machines, keno, bingo, or certain other games at a U.S. casino.
The casino is legally required to issue the form to you and to file a copy with the IRS. You should receive it by mid-March of the year following your win. If you won in the 2024 tax year, for example, the casino must provide your 1042-S by March 15, 2025.
What Does Form 1042-S Show?
The form contains several fields that matter for your refund claim. Understanding them helps you confirm the casino reported your win correctly.
| Field | What It Contains |
|---|---|
| Income Code | Code 28 identifies gambling winnings |
| Gross Income | The full amount you won before any withholding |
| Tax Rate | The withholding rate applied — 30% for most non-residents |
| U.S. Federal Tax Withheld | The dollar amount sent to the IRS on your behalf |
| Country Code | Your country of residence — should read CA for Canada |
| Recipient Name and Address | Your name and mailing address as provided to the casino |
Check every field when you receive your 1042-S. A wrong country code, a misspelled name, or an incorrect withholding amount can slow down your refund. If you spot an error, contact the casino’s tax department to request a corrected form before you file.
Is Form 1042-S the Same as Form W-2G?
No — they serve similar purposes but apply to different taxpayers. The W-2G is issued to U.S. residents and citizens who win at gambling. The 1042-S is issued specifically to foreign persons, including Canadians, whose U.S.-source income is subject to withholding under the nonresident alien rules. If you are a Canadian and you received a W-2G instead of a 1042-S, the casino may have made an error — this is worth clarifying before you file.
What Do You Do With Form 1042-S?
The 1042-S is the key document in a Canadian’s U.S. gambling tax refund claim. Here is what needs to happen with it:
- Keep the original in a safe place — it cannot easily be replaced if lost.
- Use it to confirm the amount withheld when preparing your U.S. nonresident return.
- Attach it (or reference it) when filing Form 1040-NR with the IRS.
- Provide it to your tax recovery specialist so they can calculate your refund correctly.
The 1042-S alone does not trigger a refund. You must file a U.S. nonresident income tax return — Form 1040-NR — to claim back the withheld amount. That return must also be supported by a valid Individual Taxpayer Identification Number (ITIN). If you do not already have an ITIN, you will need to apply for one before or alongside your return.
What If You Lost Your 1042-S?
Contact the casino’s cage or tax department first — most large U.S. casinos can reissue the form. If the casino is unresponsive, you can request a copy of the information return from the IRS using Form 4506-T. This process takes time, so act as early as possible to avoid missing the three-year refund window.
Why Filing the Refund Claim Yourself Is Harder Than It Looks
Many Canadians receive a 1042-S and assume a straightforward refund follows. In practice, the process involves obtaining an ITIN, completing a multi-page nonresident return, applying the correct article of the Canada–U.S. Tax Treaty, and mailing the package to the right IRS processing center. A single error — a mismatched name, a missing certification, or the wrong treaty article — can result in a rejection or a delay of many months.
U.S. Tax Recovery is an IRS Certified Acceptance Agent. That means we can verify your identity documents in-house, which eliminates the need to mail your original passport to the IRS. We prepare and file the complete package on your behalf, from the ITIN application through to the final refund.
The 30% Withholding Tax on U.S. Gambling Winnings
When a Canadian wins $1,200 or more on a slot machine at a U.S. casino — or wins at keno, bingo, or certain other games above their respective thresholds — the casino is required to withhold 30% of the gross amount before paying out. On a $6,000 jackpot, that is $1,800 remitted directly to the IRS. The 1042-S documents every dollar of that withholding.
Under the Canada–U.S. Tax Treaty, Canadian residents can offset documented gambling losses from the same U.S. trip against their winnings, which can reduce or eliminate the taxable amount and generate a larger refund. The treaty benefit does not apply automatically — it must be claimed correctly on your 1040-NR return. If you have a 1042-S sitting in a drawer, contact us today to find out how much you may be entitled to recover.
Frequently Asked Questions
How many years back can I file a refund claim using a 1042-S?
You generally have three years from the original filing deadline for a given tax year to claim a refund. For most gambling winnings, that means you can potentially recover tax withheld over the past three calendar years. If you have older 1042-S forms, check your eligibility before the window closes.
Do I need an ITIN before I can use my 1042-S to claim a refund?
Yes. The IRS requires a valid Individual Taxpayer Identification Number to process a nonresident return. If you do not have one, you must apply using IRS Form W-7 before or alongside your 1040-NR filing. As a Certified Acceptance Agent, U.S. Tax Recovery handles the ITIN application as part of the full refund process.
What if the casino issued me a W-2G instead of a 1042-S?
This can happen if the casino did not record your foreign status correctly. A W-2G is intended for U.S. residents, while a 1042-S applies to non-residents. Contact the casino to request a corrected form. Filing with the wrong document can cause the IRS to misapply your treaty benefits and delay your refund significantly.
Have a 1042-S? Let’s Turn It Into a Refund.
If a U.S. casino withheld 30% of your winnings, you may be entitled to a refund under the Canada–U.S. Tax Treaty. U.S. Tax Recovery is an IRS Certified Acceptance Agent — we handle your ITIN application, your 1042-S, and your 1040-NR filing from start to finish.
This article is general information, not tax advice. Individual circumstances vary.
