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How to claim a refund from Gambling Tax withholding in the US?

Posted on 15 June, 2014 at 2:45

Question: how to claim a refund of a tax withholding from gambling winnings in the US?

 

The information below applies to Canadian residents who are not US citizens & are not US residents:

Gambling winnings from US are not taxable in Canada under Tax-treaty. So you do not have to report this type income in Canadian tax return, and do not claim a deduction or credit of this Tax withholding neither. But Gambling winnings are totally taxable in the US, usually subject to 30% withholding tax with payer issuing Form W-2G http://www.irs.gov/pub/irs-pdf/fw2g.pdf or Form1042-S, http://www.irs.gov/pub/irs-pdf/f1042s.pdf shows how much amount being holding in Federal Tax or States Tax if applicable . You may get recovery some or all of the tax. In order to get a refund, Canadian Residents must file a US tax return Form 1040NR & schedule NEC. Instructions for the Form 1040NR:

http://www.irs.gov/pub/irs-pdf/f1040nr.pdf

If you do not already have an individual Tax Payer identification Number (ITIN), you need to apply for one using Form W-7:

http://www.irs.gov/pub/irs-pdf/fw7.pdf

 

 

For more information, please send us your request, we are happy to assist you.

 

Categories: Tax