In the United States, casinos and similar establishments normally withhold 30 percent from the gambling winnings since this is the required percentage of the IRS. Canadian citizens are bound by the U.S.-Canada Treaty, allowing them to offset their gambling losses against their gambling winnings. This is usually reported and evidenced by Form 1042-S, which in turn becomes the basis for Canadian citizens to get gambling tax refunds. Other than Canada, the United Kingdom also enjoys the same privilege.
Casino Winnings
The feeling of winning in a casino is euphoric, both for first timers and returnees. However, such feeling could always fade easily knowing that casino winnings should be included among the income earned for the period, and thus, is subject to tax. But thankfully, the taxes withheld can be reverted to form part of a U.S. resident and non-U.S. residents’ casino tax refunds. Among the casino games that may entitle U.S. citizens and some non-U.S. citizens to gambling tax refunds are:
Bingo
Game show wins
Keno
Lottery wins
Racing – dog, horse
Slot machines
Tournaments, such as Blackjack, Poker, etc.
Who Qualifies for Refunds
Not all of the casino gamblers can qualify to claim casino tax refunds. The IRS can be strict in recognizing those eligible, which is why those who wishes to get gambling tax refunds must be aware of the requirements in order not to be frustrated. Those who are eligible for the refund must be:
A winner of a taxable game from a qualified gaming activity in the last three years
A holder of I.R.S. Form 1042-S given by the casino
A qualified loser of casino games as stated in the Canadian-U.S. Tax Treaty
Get Refunds
Casino tax refunds can be taken back even after three years from the date of winning. This is how great gambling tax refunds are. This is why it is always important to take note of winnings and losses, especially for those who frequent casinos. Jotting down and making records of how much have been won and lost, and in what game the winnings and losses happen is equally important. These data can fully help in successfully claiming casino tax refunds. Evidences such as tickets, receipts, statements or records that can fully substantiate the winnings or losses is enough to prove to the IRS that you are eligible for gambling tax refunds. If you are hoping to show a personal record in getting back the tax withheld, information like the place, date, time and people present during the time of loss or gain can be an effective proof, too. Casino losses can also be substantiated by showing canceled checks, bank statements showing withdrawals, and other similar documents.
Be Trouble-Free, Be a Winner
Now, you do not have to worry if the IRS takes away thirty percent of your gambling winnings because there are specialists who will take charge in getting them back through gambling tax refunds. Canadian citizens and other non U.S. citizen can depend on them for the complete or partial casino tax refund and will be there to assist and guide you all throughout the process, step by step. So feel great when you are winning in the casino and leave the worries to the professionals.
By vikram kumar
If you need help with gambling tax refunds , log on to Casino Tax Refunds. You can also learn about casino tax refunds at their site.
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