Going south of the border is a favourite pastime for many Canadians, but when they apply for gambling tax refunds, they may be surprised to find out that not only is the type of gambling they’re applying to get a tax refund for not covered, but it may also even be illegal! As one of the leading providers of gambling tax refunds, Refund Management Services would like to outline a few of the types of gambling that are legal and others that are not.
Of course, any gambling involving animal fighting, such as dog fighting or cock fighting, is not eligible for a gambling tax refund. It should also come as no surprise that underage gambling is illegal as well. Be sure to check the legal age for gambling in whichever State you are heading to if you’re planning to bring your children on a trip to a gambling Mecca such as Las Vegas or Atlantic City.
Even if you aren’t planning a trip to a casino when you’re going to the U.S., you may just be tempted to get in a little online gambling. However, computer gambling is illegal in some U.S. states, carrying a hefty fine or even imprisonment. If you gamble online, check to make sure that it is legal in the state you are in.
If you are planning a trip to the U.S. for gambling, here are a few of the gambling activities that are legal and for which you can receive gambling tax refunds:
Casinos & Racetracks: Gambling at casinos and racetracks is completely legal. Winnings from casinos and racetracks are eligible for gambling tax refunds provided you file within the required three years.
Prizes: If you win any prizes, such as a car or a trip, you can also be taxed on them. Entering draws is legal, but the IRS will still tax you on your prizes.
Video Lottery Terminals: If you win anything on video lottery terminals, this also counts as gambling winnings. We recommend sticking to the terminals in casinos. You may be tempted to get in a few games if you’re at a restaurant or gas station and there’s a video lottery terminal, but we suggest sticking to casinos for gambling of this type. It’s just safer in terms of avoiding any type of fraud or even identity theft.
If you have any questions about the types of gambling that are eligible for gambling tax refunds, the rules regarding gambling in individual states, and more, call Refund Management Services or visit our website.
Get back the money that is rightfully yours with gambling tax refunds…and let us do all the work for you!
Guidroz, B., “What kinds of gambling are legal and illegal,” Daily World, September 28, 2014, http://www.dailyworld.com/story/news/local/2014/09/28/kinds-gambling-legal-illegal/16396361/.