Gambling Taxes Got You Down? Apply For A Gambling Tax Refund!

Canadian Gamblers: Get Back Your Taxed Gambling Winnings

Taxes are a fact of life.  Gambling taxes are a form of taxation too.  In Canada, gambling winnings are considered windfall gains like insurance settlements.  Thus Canadian gamblers, and especially the lucky jackpot winning Canadian gamblers assume that ALL of their gambling winnings are not taxed.  Unfortunately the Canadian tax system is especially generous when it comes to gambling taxes.  In the United States, the Internal Revenue Service renders gambling taxes at close to its highest marginal rates.  Lottery wins and slot jackpots above a certain amount are subject to gambling taxes, and there are no exemptions for Canadian gamblers visiting American casinos.  Canadians are assessed US gambling taxes.  But as we'll see, Canadians are also eligible to have their US gambling taxes refunded.

The amount of gambling tax paid by Canadian gambling winners to the Internal Revenue Service is based on complicated rules.  For example, all slot jackpots of at least $1200 USD are taxed at 30%.  Thus, slot jackpots of $1199.99 USD and under are not taxed.  If you have won $1200 USD exactly at a US casino with 30% withholding tax deducted, the IRS will withhold gambling taxes of $360 USD and you get a take home amount of $840 USD.  Many Canadian gamblers hit with the US gambling taxes are disappointed, but few will take the necessary steps to reclaim their taxed winnings.

Canadian gamblers who have been assessed US gambling taxes will be issued an Internal Revenue Service form 1042-S.  Canadians with form 1042-S will have had withholding taxes (including withholding of gambling taxes) paid to Uncle Sam.  Luckily, thanks to the Canada US tax treaty, Canadian gamblers are eligible for a refund of their US gambling taxes.  Canadian gamblers can offset their US gambling winnings against their US gambling losses.  This results in a partial to full refund of the Canadian's gambling taxes.  Since the vast majority of gamblers have gambling losses that equal or exceed the monetary amount of their gambling wins, most gamblers are able to reclaim the entire amount of their previously withheld gambling taxes.

Using a Certifying Acceptance Agent like US Gambling Refund for your refund management services will ensure the largest, most comprehensive gambling tax refund.  United States Gambling Refund's various professionals are well versed with cross border tax laws and its related bureaucratic frustrations.  US Gambling Refund has a simplified process for cross border gambling tax returns.  We help clients obtain a U.S. Individual Taxpayer Identification Number (ITIN) for the client.  Then, we apply for an IRS tax refund on behalf of its client.  The entire process generally takes three to four months.  A Certifying Acceptance Agent like United States Gambling Refund will help Canadian gamblers negotiate the myriad obstacles of the Internal Revenue Service's tax laws.  We will deal with the IRS, allowing you to enjoy more of your gambling wins.  It's your money, you should enjoy as much of it as possible.

Contact U.S. Gambling Refund to get back all of your taxed gambling winnings!

Article Source: http://www.articlesbase.com/taxes-articles/gambling-taxes-got-you-down-apply-for-a-gambling-tax-refund-2010416.html

Lucky Larry is a US accountant and a regular cross border gambler.  He has been helping Canadian gamblers & other foreign visitors to the United States claim back their gambling taxes from the IRS.