What Is IRS Form 1042-S?
IRS Form 1042-S is the document a U.S. casino sends you — and files with the IRS — after withholding tax from your gambling winnings as a non-resident. It reports the gross amount you won, the 30% withheld, and identifies you as a foreign person subject to U.S. withholding. Think of it as your official receipt for the tax the casino took before you left the building.
If you are a Canadian who received a Form 1042-S after a U.S. casino win, that withheld amount is not necessarily gone. At U.S. Tax Recovery, we use your 1042-S to file the correct IRS paperwork on your behalf and recover as much of that withholding as you are entitled to under the Canada–U.S. Tax Treaty.
KEY TAKEAWAYS
- Form 1042-S documents U.S.-source income paid to a foreign person, including casino gambling winnings.
- Casinos issue it when they withhold the 30% non-resident tax on qualifying jackpots.
- You need your 1042-S to file a U.S. non-resident return and claim a refund.
- Canadian residents can use the Canada–U.S. Tax Treaty to offset winnings with documented gambling losses.
Why Did the Casino Give You This Form?
U.S. tax law requires casinos to withhold 30% of gambling winnings paid to non-resident aliens when a payout crosses certain thresholds. Once the casino withholds that money and remits it to the IRS, it must report the transaction — and Form 1042-S is that report. You receive a copy because you are the person whose income was affected.
The form is not a bill and it is not a final tax assessment. It is a record. Whether you owe the full 30%, something less, or nothing at all depends on your individual circumstances — specifically, whether you have gambling losses to offset and whether you file a return to claim the treaty benefit.
What Information Is on Form 1042-S?
The form contains several fields that matter when you file for a refund. Understanding them helps you verify the document is correct before submitting anything to the IRS.
| Field | What It Shows |
|---|---|
| Income Code | Code 28 identifies gambling winnings paid to non-residents |
| Gross Income | The total amount you won before any withholding |
| Tax Withheld | The dollar amount the casino held back and sent to the IRS |
| Withholding Rate | Typically 30% for non-resident aliens without a treaty exemption applied |
| Country Code | Your country of residence — CA for Canada |
| Recipient TIN | Your Individual Taxpayer Identification Number (ITIN), if you have one |
Check every field carefully. A wrong country code, an incorrect withholding amount, or a missing ITIN can complicate or delay your refund claim. If you spot an error, contact the casino’s tax department to request a corrected form before filing.
Form 1042-S vs. Form W-2G: What Is the Difference?
Both forms report gambling winnings, but they apply to different situations. Form W-2G is issued for certain winnings paid to U.S. residents and citizens. Form 1042-S is issued specifically for payments to foreign persons — which includes Canadian visitors. If you are a Canadian who won at a U.S. casino, you should receive a 1042-S, not a W-2G.
In some cases, particularly at smaller or less experienced casino properties, you may receive a W-2G instead of a 1042-S. This can create problems when you go to file. A tax recovery specialist can help you address a misclassified form so your refund claim is not rejected on a technicality.
How to Use Form 1042-S to Claim a Refund
Receiving a 1042-S is the starting point, not the finish line. To recover the withheld tax, you need to take several additional steps.
Step 1 — Obtain an ITIN
To file a U.S. non-resident tax return, you need an Individual Taxpayer Identification Number. If you do not already have one, you must apply using IRS Form W-7 and submit certified identity documents. As an IRS Certified Acceptance Agent, U.S. Tax Recovery can verify your identity documents in-house, which means you do not have to mail your original passport to the IRS.
Step 2 — Gather Your Supporting Documents
Your 1042-S is the anchor document, but you will also need:
- Casino win-loss statements covering the same tax year
- Records of your travel dates to the United States
- Any additional 1042-S forms from the same year if you had multiple qualifying wins
Step 3 — File Form 1040-NR
The refund claim is made on IRS Form 1040-NR, the U.S. Non-Resident Alien Income Tax Return. This return reports your gambling income, claims the Canada–U.S. Tax Treaty benefit, and applies any documented gambling losses to reduce the taxable amount. The difference between what was withheld and what you actually owe is your refund.
Step 4 — Submit and Wait
Non-resident gambling refund returns must be mailed to the IRS — electronic filing is not available for these returns. Processing typically takes six to nine months from the date the IRS receives a complete, error-free return. Incomplete or incorrectly prepared returns reset that clock.
Why Filing This Return Alone Is Harder Than It Looks
The 1040-NR is not a simple form. Applying the correct treaty article, calculating the allowable loss offset, and matching the figures to your 1042-S without triggering an IRS notice requires precision. A single mismatched name, a missing certification, or an incorrectly claimed treaty provision can result in a rejection or months of additional correspondence.
U.S. Tax Recovery specializes exclusively in these filings. We handle the ITIN application, prepare the 1040-NR, apply the treaty correctly, and manage any IRS follow-up on your behalf. Our clients do not have to learn the U.S. tax system — they hand us the 1042-S and we take it from there.
What If You Lost Your Form 1042-S?
If you cannot locate your 1042-S, you have two options. First, contact the casino’s tax or finance department directly and request a duplicate — casinos are required to retain these records and can reissue them. Second, you can request a transcript from the IRS once the casino has filed its copy, though this takes longer. Do not wait too long: refund claims must generally be filed within three years of the original return due date for that tax year.
The 30% Withholding Tax and the Treaty Offset
Under U.S. tax law, casinos must withhold 30% of gambling winnings paid to non-resident aliens when a slot machine jackpot reaches $1,200 or more, or when certain other thresholds are met. On a $6,000 jackpot, that is $1,800 withheld and remitted to the IRS before you receive your payout. The 1042-S documents exactly that transaction.
The Canada–U.S. Tax Treaty allows Canadian residents to offset those winnings against gambling losses incurred during the same U.S. trip, which can significantly reduce or eliminate the taxable amount and generate a full or partial refund of the withheld tax. To take advantage of this, you must file — the treaty benefit is never applied automatically. Contact U.S. Tax Recovery today to find out how much of your withheld tax you may be entitled to recover.
Frequently Asked Questions
When should I expect to receive my Form 1042-S from the casino?
Casinos are required to issue Form 1042-S by March 15 of the year following the tax year in which your winnings were paid. If you won in 2025, your 1042-S should arrive by March 15, 2026. If you have not received it by then, contact the casino’s tax department directly to request your copy.
Can I file for a refund if I have multiple 1042-S forms from different casinos?
Yes. If you visited multiple U.S. casinos in the same tax year and received more than one 1042-S, all of them are reported on a single Form 1040-NR return for that year. Your total winnings and total losses from all U.S. gambling activity in that year are combined to calculate the refund amount.
Does having an ITIN from a previous refund claim mean I can skip the W-7 application?
Yes, if your ITIN is still active. ITINs issued after 2013 may expire if they have not been used on a U.S. federal tax return in three consecutive years. Check whether your ITIN is current before filing. If it has expired, a renewal application through IRS Form W-7 is required before your return can be processed.
Won Big at a U.S. Casino? Let’s Get Your Money Back.
If a U.S. casino withheld 30% of your gambling winnings and issued you a Form 1042-S, 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 review, and your 1040-NR filing from start to finish.
This article is general information, not tax advice. Individual circumstances vary. Tax rules change; consult a qualified tax professional regarding your specific situation.
