Casino Tax Refund For Canadians

If you are a Canadian and have gambled, or will gamble in the United States, you stand a good chance of paying the Internal Revenue Service’s dreaded US gambling tax. The US gambling tax is imposed on certain wins and above certain winnings thresholds. Many Canadian gamblers are dismayed and surprised when they realize their US casino jackpots have been reduced by the IRS' 30% US gambling tax. Luckily, the money deducted as US gambling tax at a US casino can also be returned to the Canadian gambler in the form of a US gambling tax refund.

The following is a list of gambling games which are taxed by the IRS and are eligible for a US gambling tax refund for Canadians:

• Slot machines
• Gaming tournaments (i.e., poker, blackjack, slots, etc.)
• Lotteries
• Dog race wagering
• Horse race wagering
• Keno
• Game shows

Depending on the gambling game played by the US non-resident, US gambling tax will be deducted at different thresholds. For instance, slot machine winnings are generally deducted on gambling jackpots larger than $1200.00 USD. Slot jackpots less than $1199.99 USD are generally not taxed. Alternatively, US lottery winnings are withheld 30% US gambling tax when the lottery winnings are $600 USD or more. Lottery jackpot winnings of $599.99 USD or less are not subject to US gambling tax. As you can see, the scenarios for when US gambling tax is deducted by the IRS is dependent on what gambling game is played and how much is won. To complicate things further, some Indian tribal casinos may start deducting the 30% US gambling tax from the first dollar that is won by a US non-resident regardless of the gambling game played. So, even if you won only $100 USD, you will only get to take home $70 USD as your gambling winnings.

American gamblers gambling within their own country are eligible for a domestic US gambling tax refund every year when they file their IRS federal taxes. In the United States, gambling losses are deductible against gambling wins. Most gamblers normally have some sort of gambling losses, and thus almost every US gambler can receive a refund of gambling tax. Gamblers with gambling losses that equal or exceed their gambling wins can get a full casino tax refund. Gamblers with less gambling losses than their gambling wins within the same tax year can receive a partial refund of gambling tax.