Tax on Gambling Winnings

xaviermorin

Banned User - spammer
How many of you aware of the rule due to which we have to pay 30% of the gambling winnings as Tax to US government if we are a non-US resident?
 

Captain Chaos

Senior Member
webby
MM
How many of you aware of the rule due to which we have to pay 30% of the gambling winnings as Tax to US government if we are a non-US resident?
We don't? We're exempt. At least in the UK anyway, I thought? I think it's absurd to pay taxes on winnings. If you pay tax on winnings, then I say you should get tax back off the losses! Funny it doesn't happen though. Wonder why that is... :rolleyes:
 

Batman

The Dark Knight
MM
How many of you aware of the rule due to which we have to pay 30% of the gambling winnings as Tax to US government if we are a non-US resident?
I think US residents also have to pay a tax from their winnings.
Casinos also, so it's a win - win situation for the government.
 

conker

Senior Member
webmeister
CAG
MM
I recall seeing posters in the Vegas Airport saying something like:

Are you a Canadian resident and need to claim your gambling taxes back? Call 0800-XXXXXXX

I think that because Canada is so close to North America that US authorities are able to take taxes off you on big wins and then you need a lawyer to help you claim it back. OF course, alot of this is assumption and maybe a Canadian resident can clear this up for you :)
 

Jasminebed

Grumpy old gal
Here's a pretty informative post from Trip Advisor, with links to forms:
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The best way to keep track of how much you gamble is to use the casino's player card.

There are agencies that will take care of the process for a fee.

If you use a travel agent to book your flight to Vegas or other US destination, most of them will be familiar with the process.

I've gone by bus to Atlantic City, the tour guide informed us they had the necessary info.

AFAIK you needed to return to Canada before applying for a refund.
 

dicky wink

Full Member
My Experience Last year

I was at the Rivers Casino near Chicago last year .. and put £20 into a $1 slot ... few spins and i get a red 7 and two wilds ... looked up and red 7s pays $100, thought not a bad win ... then the lights kept flashing the credit meter went up and past $100 ... I didnt realise that the wilds were a 10x pay and a 5 x pay ... which made it a $5000 win

had to get a hand pay ... the staff were quick an friendly ... BUT as im a UK resident.. they told me that as the win was above $1200 all of the win would be taxed at 30%

so only ended up with $3500 in my hand, not complaining as i thought initialy i had only won $100 :)

My advice is when playing in other countries check the tax limits ... its better not to play high stakes and aim for lots of smaller wins across more machines ( each less than 1200 ) as you could end up worse off

all the best ... Dicky
 

pmutts

Senior Member
PABnonaccred
No matter what country you are from taxes are withheld.

If you hit a single aggregate payout over $1200 on any slot or video poker machine the casino is required to withhold a certain amount regardless of where you live. In jurisdictions with a State Income Tax, i.e. Louisiana, the State tax is also withheld.

As a Texas resident, I must file a return with the state of Louisiana and the withholding is refunded. It is a hassle and they take their sweet time . . . several months but you do get it back if you file.

The is also true for federal income tax for non US residents or citizens. You must file a return and you will receive a refund. In no case have I ever had 30% withheld. I think it is more like 12% Federal and 3-5% State.
 

jetset

RIP Brian
CAG
The IRS is currently trying to get that $1,200 threshold reduced to only $600...and they want the casinos to use their player card technology to help track individual wins. At a hearing just this week the AGA opposed both proposals.
 

pmutts

Senior Member
PABnonaccred
I just reread your post Dicky Wink

I don't doubt for a moment that if you say they withheld 30% that is what happened. This is shocking. I do know that Illinois has one of the highest state income taxes in the entire country so I'm pretty confident that 30% included both federal and state.

I know they give you a form for each so if you have the paperwork you were given it should be clear. I recommend you start at www.irs.gov and see what you can find about non residents/non citizens returns. I cannot imagine that you are not entitled to most if not all of that money back.

If there was state of IL withholding you should be able to find something on the states web site. If you are due a refund there the April 15 filing deadline does not apply and there is no penalty.

I would be curious to know what kind of a refund you are entitled to. Now, knowing the notoriously corrupt government of IL, it wouldn't surprise me if they do tax foreigners a significant sum on winnings.

This is absolute bullshit and I am certain you will agree. Why should you have to pay taxes on your winnings when you don't live here and already pay a HEFTY sum to the Crown. I hope I am right and you are due a refund of most of that money.

Good luck. I hope you will come back to this thread to update us with the status.
 

dunover

Unofficial T&C's Editor
Staff member
webmeister
PABnonaccred
PABnononaccred
CAG
mm3
30% Tax??

I thought the Mafia were on the margins of US society, not bloody governing it!

In N.Europe gambling is tax-free, but there used to be 10% on betting in the UK. You could choose to pay this on your stake (i.e. £10 bet plus £1 tax) and have ALL the winnings tax-free OR not pay tax on the bet and get 10% of the returns removed upon cash-out.

Why anyone serious about gambling would visit the US to pay tax on winnings and wait ages to claim it back I don't know. A large proportion of it would have a delayed payout so long even the Rushmore Group would look embarrassed...

They must value the scenery and experience more than the gaming.:p
 

cpdnd31

Ueber Meister
webmeister
CAG
HI I live 8 blocks from Rivers Casino. Illinois here: Yes 30 percent is the tax rate. There is also or use to be a flat tax of 2 or 3 percent as well. Welcome to my state!!! LOL
 

pmutts

Senior Member
PABnonaccred
That is seriosly JACKED UP cpdmd31!

HI I live 8 blocks from Rivers Casino. Illinois here: Yes 30 percent is the tax rate. There is also or use to be a flat tax of 2 or 3 percent as well. Welcome to my state!!! LOL
My partner moved from New Orleans to Hinsdale at age 13. Poor kid--imagine how those rich punk ass Hinsdale brats chastised him because of his New Orleans accent and anything else they could find. His dad was a McDonald's Exec.

I grew up in Louisiana which has always had notoriously corrupt state government. I never realized that IL is actually worse than LA until Jason enlightened me.

I definitely suggest all foreign tourist visiting our great nation with the intention of gambling do their homework based upon the state's income tax withholding policy where gambling is concerned.

Obviously Illinois should be avoided. Nevada (like Texas--one of the few states without a single casino) has no state income tax. So withholding is minimal and you should be able to get it back. Although Louisiana and Mississippi have state tax, it is a nominal amount and you should be able to get it refunded to you.

I highly recommend gambling on the Mississippi Gulf Coast--It is my favorite place to play. Blackjack conditions are among the most favorable anywhere. Beau Rivage is my favorite casino in the world. The Hard Rock next door is also fantastic. Harrah's Gulf Coast (formerly the Grand) is pretty good. In Gulfport, Island View if spectacular. There are many others too.
 

dicky wink

Full Member
Rivers Casino

Hi all thanks for the reply
Yes it was 30% and all above board .... they gave me the tax form receipts etc which i had to sign
To be honest i didnt want to try and claim ... i was happy ... i went in with $200 and came out with $3500 also thinking that that tax money may find its way back into the community somehow.
I know that quite a percentage of Gambling tax HAS to be used for good causes in Illinois ( they also have slot machines in pubs and bars now (even Hooters ) which also has to contribute to the local community )

@cpdnd31
Its a nice casino ... i spent a year working at Franklin Park living out of the Crown Plaza on rivers road Rosemont ... you are lucky to live close by, the machine i won on was 2 rows from the noodle bar, ironically they removed it 2 weeks later, my favourite machines there were the Mermaid 3 reel machines near the Nightclub, very small casino but very friendly staff and a great atmosphere.

PS the staff told me during the Hand Pay that if i had a US national insurance number they would have paid in full and i would have had to declare the winnings in the IRS return... and that is was only because i was not a US citizen that they had to withold the tax


all the best

Dicky
 

Casinomeister

Forum Cheermeister
Staff member
I'm a US citizen, but a resident of Bierland and pay my taxes here as well. Whenever I'm in Vegas, I carry my passport and residence card to show the casino management (in case of the rare occurrence I get a hand pay), and I let them know I don't pay US tax. I have never been charged US tax on the spot.
 

dionysus

can turn wine into water
CAG
MM
Stoked casino (and lottery winnings) are tax exempt here - remind me if someone suggests Vegas to hit Universal or Six Flags instead and gamble when I get back. :p (then again, if liquor is still free I'll hit the penny machines)
 

funnymunny

Sometimes here, always 'away'
webby
Cross-posting from another thread on the subject...


"Withholding Tax in the US nonresident alien and exemption treaty..."

Confirmation based on my experiences here

Full thread here
 
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