I Need A Casino Tax Rebate
If you are a Canadian who gambles in the United States, chances are you will eventually require a casino tax rebate. The Internal Revenue Service (IRS) has licensed a number of Certifying Acceptance Agents to specifically provide refund management services. Refund management services are needed to procure a casino tax rebate from the IRS.
When Are Canadian Gamblers Taxed
The IRS casino taxes are levied on gambling jackpots that exceed a set amount. The minimum threshold for IRS casino taxes for a slot jackpot is $1200 US. If an individual slot jackpot is $1200 US or more, a 30% withholding tax is imposed on the entire slot jackpot. The tax on bingo jackpots is also set at the same amount, $1200 US. The tax on keno jackpots however, takes effect at $1500 US. Strangely there are generally no IRS casino taxes on table games like blackjack and poker, but blackjack tournament and poker tournament winnings are subject to casino taxes. Canadians are not exempt from IRS casino taxes, yet are still eligible to apply for a casino tax refund. Unfortunately most Canadian gamblers are unsure of the laws and the subsequent procedures required to obtain a casino tax refund.
Who Can Apply For A Casino Tax Rebate?
Non-US residents who have paid IRS casino taxes are eligible for a casino tax rebate. Under IRS statutes casino losses are deductible from casino wins. Thus a gambler with any US-based casino losses is eligible for at least a partial casino tax rebate. A gambler whose casino losses are as large as his/her casino win will receive a full casino tax rebate. Even though only certain casino games are subject to IRS casino taxes, any type of US-based gambling loss can be used as a tax deductible gambling loss. If you have had IRS casino taxes deducted from your slot jackpot, your losses from non-taxable blackjack and poker games can be used to offset the gambling wins. All of the IRS casino taxes will be returned in the form of a casino tax rebate.
Refund Management Services
As stated earlier, Certifying Acceptance Agents provide refund management services. The refund management services provider will pursue several steps in order to obtain a casino tax refund.
First, the provider of refund management services obtains an Individual Taxpayer Identification Number (ITIN) on behalf of the client. Then on the basis of the USA Canada tax treaty, an IRS tax return application is filed, with the applicant's IRS casino taxes partially or fully offset by his/her corresponding US gambling losses. The IRS will then issue a cheque for the amount of the casino tax refund.