Us Gambling Refunds Are Available For Canadians Hit With Us Casino Tax

Taxed On Your Slot Jackpots?

Canadian gamblers venture into the US based casinos and other gambling establishments in the hope of hitting slot jackpots and other gambling wins.  Unfortunately many of these gamblers are also assessed the dreaded IRS casino tax after getting lucky with the slot jackpots.  Yet US gambling refunds are available to Canadian gamblers who have paid the US casino tax.  Canadian gamblers need to be aware of their rights under the IRS tax code, including the right to US gambling refunds.

When Are Casino Taxes Levied?

US slot jackpots are taxed whenever the slot jackpot amount meets or exceeds $1200 USD.  The bingo winnings tax also takes effect at $1200 USD.  The US casino tax is a flat rate of 30%.  Thus your tax on slot jackpots and your bingo winnings tax has the exact same calculation.  If your slot jackpots and/or bingo wins do not reach $1200 USD, your win will not be taxed.  Cumulative slot jackpots and/or bingo wins that are over $1200 USD, but with each individual jackpot and bingo win under $1200 USD, will not be taxed either.  Horse racing wins are taxed at $600 USD above and over the original wager, and the horse win must have a payoff of at least 300:1.  Table games usually are not subject to the casino tax, but table game winnings from tournaments are subject to the casino tax.

How Can I Reclaim My Casino Tax?

A tax reciprocity treaty exists between Canada and the United States.  The treaty guarantees equal treatment for Canadians under United States tax law.  American citizens usually receive US gambling refunds for the casino tax they have paid for their slot jackpots, horse race winnings, etc.  In the United States, gambling losses can be deducted from gambling winnings.  Thus people who have paid casino taxes, yet have had ANY US-based gambling losses from the same time period will have a refund of their casino tax.  Unfortunately while Canadian gamblers often pay the US casino tax for their US gambling winnings, Canadians generally do not file US tax returns.  Most Canadians, and most accountants on both sides of the border are unsure or unable to pursue cross border tax claims.  Thus the Internal Revenue Service (IRS) has licensed Certifying Acceptance Agents to help Canadian gamblers recover their US-based casino tax.  Certifying Acceptance Agents have been screened to verify their knowledge of US tax laws, objectivity, and professionalism.

The US Gambling Refund Process

The process to obtain a US gambling refund can be divided into two parts.  The Certifying Acceptance Agent will first apply for an Individual Taxpayer Identification Number from the IRS on behalf of the client.  After this is accomplished, the Certifying Acceptance Agent will then file a tax return on behalf of the client.  The entire US gambling refund process will take approximately 12 - 16 weeks and is the fastest, most thorough way to obtain a cross border US gambling refund.

Article Source: http://www.articlesbase.com/ask-an-expert-articles/us-gambling-refunds-are-available-for-canadians-hit-with-us-casino-tax-2102891.html

Martin Downer first became interested in probabilities and statistics as a child.  After working as a high school math teacher and a part time investor, Mr. Downer now splits his time in Victoria, Toronto, and his prized winter vacation home in Las Vegas.  Realizing that the IRS deducted its 30% casino tax from slot jackpots, Mr. Downer decided to write about US gambling refunds.  Mr. Downer hopes more Canadians will pursue refunds of their casino jackpots.