Internal Revenue Service assessed US taxes on your jackpot winnings?  You are entitled to a refund of your casino winnings tax.

The Internal Revenue Service mandates a 30% casino winnings tax on the gambling winnings of US non-residents.  Luckily, the US-Canada tax treaty allows Canadians to offset gambling losses against their gambling winnings.  For example, if you have won 00 USD on a slot machine jackpot, and have 00 USD of any US-based gambling losses, you are entitled to receive a complete refund of your casino winnings tax.  

The Internal Revenue Service applies the casino winnings tax on some types of gambling and not others.  The casino winnings tax is applied to the winnings of the following activities:

Slot winnings;
Bingo winnings;
Keno winnings;
Lottery winnings;
Poker tournament winnings;
Horse Racing winnings;
Dog Racing winnings; and
Jai Alai winnings.

The threshold for US taxes varies with the activity.  For example, slot machine winnings of 00 USD or more are eligible to be taxed, whereas lottery wins of 0 USD AND at least 300 times the original wager have US tax applied.

The Internal Revenue Service also exempts several wagering activities from gambling tax.  In general, table games are not taxable.  Examples include: baccarat, big 6 wheel, blackjack, craps, and roulette.  However, table game tournaments are taxed.  Thus you may win big playing poker, and will not be assessed tax.  But if you win big in a poker tournament, you will be assessed tax.  Complicated enough?

In any case, Canadian gambling jackpot winners (and residents of many other foreign countries) are eligible to have all or part of their US casino winnings tax refunded.  

If you are a Canadian and have been assessed the casino winnings tax, you are legally entitled to reclaim a gambling tax refund.  

The casino winnings tax comes along with IRS form 1042-S.  Gambling jackpot winners who have lost or misplaced their form 1042-S are legally entitled to a copy from the casino that initially issued it.  The casinos are obligated to have records of their issued 1042-S forms.

Gambling jackpot winners have three years (from the time of the gambling jackpot) to apply for a gambling tax refund.  Don’t let the Internal Revenue Service keep you from your money!

If the Internal Revenue Service has assessed casino winnings tax on your gambling jackpot, or if you want more information, please contact US Gambling Refund at 1-888-TAX-0TAX (1-888-829-0829) for help.