it sucks for Canadians!
- Thread starter MadJack
- Start date
Canadian Tax Treaty
Gambling winnings of Canadian residents are subject to NRA withholding at 30% on the gross proceeds from gambling won in the United States. However, Article XXII of the Canada - U.S. Income tax treaty entitles residents of Canada who are taxable by the United States on gains from wagering transactions to deduct U.S. source losses from U.S. source wagering transactions. Canadian residents should file Form 1040NR (PDF) to obtain a refund of U.S. taxes withheld from the gambling winnings, if applicable.
Gambling winnings of Canadian residents are subject to NRA withholding at 30% on the gross proceeds from gambling won in the United States. However, Article XXII of the Canada - U.S. Income tax treaty entitles residents of Canada who are taxable by the United States on gains from wagering transactions to deduct U.S. source losses from U.S. source wagering transactions. Canadian residents should file Form 1040NR (PDF) to obtain a refund of U.S. taxes withheld from the gambling winnings, if applicable.
Yes we get it back....takes a long time, but eventually we get it back:00hour
Although I am not sure if the US gov't does this any longer, but I know about 15 years ago my friend won about 11k in Reno, Nevada and there was some sort of "foreign tax" that he had to pay (was something like 3%). Not sure if that is still in effect or not:shrug:
Also, kind of nice if we win the lottery at say 8 million, and we get 8 million. None of that annoying tax crap. Bottom line if you win money here, you get all of it, 10 thousand dollars or 900 thousand dollars, doesn't matter it is all yours.
Does make ya wonder though, imagine if the final table at the WSOP was all Canadians, that would be a lot of tax money down the drain for the US gov't:mj07:
Although I am not sure if the US gov't does this any longer, but I know about 15 years ago my friend won about 11k in Reno, Nevada and there was some sort of "foreign tax" that he had to pay (was something like 3%). Not sure if that is still in effect or not:shrug:
Also, kind of nice if we win the lottery at say 8 million, and we get 8 million. None of that annoying tax crap. Bottom line if you win money here, you get all of it, 10 thousand dollars or 900 thousand dollars, doesn't matter it is all yours.
Does make ya wonder though, imagine if the final table at the WSOP was all Canadians, that would be a lot of tax money down the drain for the US gov't:mj07:
Thankfully I have no experiance with the IRS, I hear it can be quite fun:mj07:
IRS don't mess around do they, might send a swat team accross the border and hunt down every Canadian:142smilie
Also, I have never understood why the US taxes gambling winnings:shrug: Don't they make enough off all the legal forms of gambling in the US? And talk about annoying, useless paperwork if ya ask me:shrug: I guess they feel that people are happy with winning, so 30% won't matter:142smilie
IRS don't mess around do they, might send a swat team accross the border and hunt down every Canadian:142smilie
Also, I have never understood why the US taxes gambling winnings:shrug: Don't they make enough off all the legal forms of gambling in the US? And talk about annoying, useless paperwork if ya ask me:shrug: I guess they feel that people are happy with winning, so 30% won't matter:142smilie
