It might only be the first week of November, but snowfalls in Alberta, Ontario, Quebec, and the Maritimes are signs that winter isn’t too far off. If you’re a snowbird, like the Canadian geese, you’re getting ready to head south.
A lot of Canadians migrate to the southern United States over the cold winter months in search of warmer climates; one million Canadians call southern states like Nevada, Louisiana, Mississippi, Alabama, the Carolinas, and Florida home every winter.
The Southern U.S. is a haven for Canadian snowbirds. It’s also home to some of the country’s biggest casinos. If you’re one of those fortunate enough to spend part of the winter under the warm sun and also like to spend some leisurely time gambling, understanding the way the U.S. taxes gambling winnings could make your life a whole lot easier.
U.S. Gaming Industry Rebounds
With the broader U.S. economy growing stronger, 2015 looks like it could be a big year for gambling in the United States. Thanks to a strong Canadian economy and close geographic proximity, U.S. casinos and gambling institutions can look forward to an influx of Canadian visitors spending their money at gaming tournaments, the lottery, keno, slot machines, and horse/dog wagering.
The IRS Does Well, Too
In the United States, winnings over $1,200 are considered taxable income. And the U.S. tax on non-residential winners is huge; Canadians and other non-U.S. residents are subject to a winnings withholding tax of 30% of their total win.
That means that if you win $10,000, you’ll walk out with just $7,000. Still a good night, but that 30% withholding tax for gambling winnings means you left $3,000 behind. That’s not an inconsequential amount.
Some table games, like blackjack and baccarat, don’t have the withholding tax applied to them because, most of the time, the payouts are in smaller increments over a long period of time.
However, according to recent statistics, more than 60% of casino goers say their favourite games are slot machines and video poker. Those “instant win” and “big jackpot” games are the ones that fall under the IRS’s 30% withholding tax.
The good news: there is a way to get the 30% withholding tax back. The bad news: IRS tax refund regulations are so complicated and bewildering you need more than a calculator and a degree in accounting to figure everything out.
If you’re a snowbird that’s been subjected to the 30% withholding tax on gambling winnings, you need to contact the U.S. casino tax recovery experts at Refund Management Services.
Just Five Minutes with the Tax Experts at Refund Management Services
At Refund Management Services, our professionals are registered agents of the IRS. That means we have a comprehensive understanding of the U.S. tax system and gaming-related tax laws and can certify your ID for you.
That doesn’t mean we just help out Canadians, though. Refund Management Services has offices around the world to help anyone who has had their casino winnings subjected to the IRS’s 30% withholding tax. It doesn’t matter if you’re a snowbird, weekend tourist, or avid gambler.
Not only will we, the professionals at Refund Management Services, help you navigate the confusing world of U.S. casino tax recovery, but in some cases where winnings are from previous years, we can also get gambling winnings back to you in just 12–15 weeks. If you already have your Individual Taxpayer Identification Number (ITIN#), then the process could take as little as six to nine weeks.
If you’ve had 30% of your gambling winnings withheld by the IRS and need help filing U.S. tax returns, call Refund Management Services, toll-free from the United States and Canada, at 1-888-272-5559.
Just give us five minutes and we’ll explain to you how Refund Management Services can help you with your U.S. gambling tax recovery and U.S. casino tax returns, saving you from all the headaches of dealing with the IRS.