Thirty percent. Unfortunately that’s the other number you need to keep in mind when you’re a Canadian or international player that’s won at the casinos in the United States. Why? Because thirty percent is the normal tax on casino winnings.
However, you can get a portion back and generally you only need to wait 12 to 15 weeks when you work with a professional tax refund company. There are a few things you should be aware of so the process goes well and, first and foremost, you need to be aware the IRS generally has a three year filing rule to get a refund on the tax on casino winnings.
You need the proper documentation as well and that includes an IRS Form 1042-S that is usually issued by the casino on the American side of the border. Here’s where getting together with the right Canadian refund company pays off. If you lose the form, the best of these companies can request them on your behalf.
You’ll generally need the right identification as well like a driver’s license, passport and/or birth certificate. Remember, this is the system that works for people from other countries as well as Canada, but you’ll be responsible for proper record keeping to get the process started so you need to keep the necessary receipts.