Canadians and other international players get hit with a tax on contest winnings when they get lucky on vacation in the United States, but there are a few things you can do to get a refund.
Knowing the requirements helps. Canada and the United States have a treaty that can help you to recoup part of the 30% tax that is often withheld and that piece of legislation has been in place since 1996. This treaty allows you to match some gaming losses against winnings. Whether you’re Canadian or another foreign national, you need to be sure you keep the proper receipts.
Getting some of that tax on contest winnings back is also time sensitive and generally there is a window of opportunity here that lasts three years. The good thing is that applicants can go back that far to claim a refund.
Everything hinges on getting the right tax refund company working for you and the ones in Canada are some of the best in the world. With the right paperwork including an ITIN# you can expedite a refund, but generally these only take 12 to 15 weeks to process.