Are you anxious about paying taxes to the state on your gambling winnings? Don’t feel tensed for help is on the way! You are certain to get your winning money back with the aid of some institutions.
Casinos mandate a casino winnings tax of 30% to be reduced from the winnings of non residents of USA. The IRS 30% withholding tax has been fixed by the IRS itself. The US-Canada treaty allows the residents of Canada to offset gambling losses against their winnings. However Canadians may obtain gambling tax refund based on Form 1042-S. With this norm Casino tax refund can only be claimed by a selected few. Hence you must know whether you are entitled to get gambling tax refund or not. You can acquire casino tax rebate for certain activities which are listed below:
• Gaming -To play for stakes with the expectation to win. It can also be inclusive of paying something in order to win a prize.
• Keno – It is a kind of speculation which you play with balls rather than counters. The numbered balls are drawn randomly. Then you are required to cover those corresponding numbers in the cards.
• Tournaments like blackjack poker – Blackjack is a widely played casino banking game. It is a mixture of chance with skills of an individual. A family of card games sharing betting rules and hand rankings is called Poker.
• Slot machines – They are machines used for gambling. They have about three reels which get in motion when a button is pushed.
• Dog/horse wagering – Betting on horse or dog racing is different than betting on other sports. In this form of betting a person has to put his/her money on the potential winner and if the money is put on the right animal then the individual wins a lucrative sum.
• Bingo -It is a card game which is played with money and in order to win lucrative amounts.
In all the above mentioned cases you may recover US gambling tax.
But the initial feelings of joy and excitement get waned gradually when you realize that you will have to pay taxes on the amount won. However taxes withheld may be included as a part of US gambling tax refunds. This is applicable for both US and non US residents’. However, the eligibility of these refunds includes the acquirer of I.R.S. Form 1042-S given by the casino, winner of a game which is taxable and is from a qualified gaming activity in the previous three years. And the last criteria include Canadian-U.S. Tax Treaty has defined the losers of the casino games and you will have to qualify as a loser.
US gambling tax returns maybe claimed after three years from the time of winning the games. Don’t be surprised with this rule of casino tax refund! Also surely keep evidences of your winning or losing in the form of records, statements, receipts, or tickets.
Don’t be tensed if you have to part with a portion of your winnings. There are refund management services to ensure that you get gambling tax refund.