U.S. Casino Taxes on Canadians Gambling In The United States

If you are a Canadian who gambles in the United States, odds are you require, or will eventually require a U.S. gambling tax refund.  Gamblers who win certain US-based jackpots above a minimum threshold are assessed U.S. casino taxes.  The U.S. casino taxes are withheld automatically, and are set at 30% of the casino jackpot itself.  The U.S. casino taxes take effect for slot jackpots of at least $1200 US.  Bingo wins also have a minimum threshold of $1200 US.  Horse racing wins require a minimum of $600 US above the original wager, and a payoff of 300:1 before the U.S. casino taxes kick in.

For example, if a gambling patron wins a slot machine jackpot worth $1000 US, the winning gambler keeps the entire amount.  If the Canadian gambler wins a slot machine jackpot of $1800 US, U.S. casino taxes of $540 US are deducted.  Table games generally do not have U.S. casino taxes assessed, but table game tournament winners are subject to U.S. casino taxes.

Canadian gamblers who win U.S. gambling jackpots cannot avoid paying U.S. casino taxes.  The U.S. casino taxes are levied across the board.  Some gamblers from certain European Union nations and Japan do not have U.S. casino taxes assessed, but Canadian gamblers are not so lucky.  The IRS will impose U.S. casino taxes on Canadians, and will not automatically rebate gambling tax for Canadians.

How Do I Pursue A U.S. Gambling Tax Refund?

The Canada U.S. Tax Treaty and the Internal Revenue Service codes state that Canadian gamblers are eligible for a U.S. gambling tax refund.  Unfortunately the ideal of the U.S. gambling tax refund is not so easy to pursue in reality.  The vast majority of bookkeepers on both sides of the border are inexperienced with pursuing a non-resident U.S. gambling tax refund.  Luckily the Internal Revenue Service (IRS) has licensed Certifying Acceptance Agents.  Certifying Acceptance Agents meet strict standards for professional knowledge and integrity regarding cross border taxation issues, including the need of Canadian gamblers to pursue a U.S. gambling tax refund.  The use of Certifying Acceptance Agents are verified to be the fastest, most thorough method to rebate gambling tax for Canadians.

Getting The IRS To Rebate Gambling Tax

The IRS takes its time to rebate gambling tax for Canadians.  Canadians, and non-Americans in general are not a priority for the U.S. tax authority.  The IRS has a lot of talented and committed people, but it is short staffed and it is very difficult for a layperson to engage.  The casino taxes withheld can be reduced by corresponding casino losses.  Thus if you are amongst the vast majority of gamblers whose casino losses meet or exceed your casino winnings, the entire amount of your casino taxes withheldcan be refunded.  If your casino taxes withheld exceed your casino losses, then you will receive a partial U.S. gambling tax refund.  Canadian gamblers have three years from the time of their initial jackpot win to pursue a rebate of their casino taxes withheld.