For many people who like to gamble, the United States is the gaming capital of the world. But non-U.S. citizens who win a substantial amount playing the slots or betting on horses soon discover that they don’t get to keep everything they win—nor do they receive their withheld taxes back in a relatively short period of time.
Gambling Tax Refunds Still Delayed by IRS
It’s important for non-U.S. citizens to understand the tax implications of gambling in the U.S. While winnings over $1,200 are taxed at 30% of the total winnings, the IRS has changed when eligible non-U.S. residents can expect to get a portion or all of their withheld taxes back.
In the past, the U.S. gambling tax recovery experts at Refund Management Services (RMS) could get you a portion or all of your withheld gaming winnings back from the IRS in just one year.
This year though, the IRS is taking much longer than normal to review your gaming winnings tax return claims. Despite a quick turnover in the past, the IRS has changed the way in which it processes tax files. Files are being reviewed later in the year—this despite the fact that RMS sent out returns at the beginning of the year.
In fact, the IRS recently informed us that they just started to review the files.
While RMS checks every day with the IRS via calls and online checks, nothing has been posted yet. The IRS initially said returns would need up to one year to review and process gaming winnings on a tax return claim—but this, it turns out, is just a timeline for when they will potentially start reviewing the tax files. It takes additional time to issue the refunds.
U.S. Casino Winnings Subject to 30% Withholding Tax
If you visit the U.S. and win a significant amount of money gambling or betting on horses, your gaming winnings are subject to a 30% withholding tax. But if you live in a country like Canada, which has signed a U.S. tax treaty, then you may be eligible for a refund.
Some of the countries that do not have a U.S. tax treaty include Australia, Bahrain, Barbados, Brazil, China, India, Indonesia, Israel, Kuwait, Mexico, Malaysia, Monaco, New Zealand, Norway, Saudi Arabia, Singapore, South Korea, Switzerland, Taiwan, Thailand, and United Arab Emirates. However, based on a recent court case, winners from these countries may qualify for a refund if they meet certain criteria.
If you win a substantial amount of money gambling—typically over $1,200—your winnings are subject to a 30% withholding tax by the IRS. For example, if you win $2,000 playing the slots, the casino will pay you $1,400; the IRS keeps the rest.
RMS is the Easiest, Fastest Way to Get Your Money Back
If you’ve been to the U.S. and had 30% of your winnings held back by the IRS, Refund Management Services can help you reclaim a portion or all of your taxable winnings.
Founded by a Canadian Chartered Accountant in 1998, RMS is the most reliable and experienced gaming and casino tax refund provider for non-U.S. residents. Only RMS has the One Simple StepTM process. Our customer service agents take care of the rest.
Once you provide us with complete documentation, your claim will be processed and we will submit it to the IRS. We have never been refused for an eligible refund.