Vegas winnings - getting that refund back -
NOTE -- As well as the regular Sunday morning program on
CHBD - www.600am.com
For the forseeable future, I will also by guesting with Fred
Snyder on CKNW every Sunday from 6 to 7 PM
Vancouver time. go to www.centa.com
to tune in on the Internet or dial in to 980 AM in the lower mainland of
My gf had $4000 withheld in Vegas. I understand we can get
The answer is yes, no, maybe, or part of
If it was just file a form to get it back, there would be no
reason to deduct it in the first place. The fact is that the US taxes
non-residents 30% on windfalls anbd unless you can show losses, there is no
I do not gamble on any regular basis and when I do, I might
drop $10.00 in the slots. If I won $12,000 and the IRS took $3,600, I
would not have any claim against the $3,600 because I had won $12,000 and the
law says the IRS gets 30%.
On the other hand, If I went out and lost $10,000, I could get
back $3,000 which would be 30% of the $10,000 lost. If i lost $5,000, I would
get back $1,500 anbd so on. To do this, i wioul dhave collected Gambling
Loss reports fropm the Casinos as i lost the moey r I would have my
'convenience' card whioch would track my wins and losses.
We can do this for you if your lady friend lost money as well as
the big win. If all she did was win and you did not lose anything,
the IRS gets to keep it all. Our minimum charge would be $300.00 with $450
more likely and it could be more if there are a lot of gambling loss
We need your gambling loss reports as well -- Add $100 if you do
not have a US ITIN already.
this older Q & A
Hi, my husband won 1,250.00 at the Tulalip
Casino on April 14, 2007. He Was given form 1042-S showing the 30%
withholding tax of 375.00. We are trying to determine how we can receive
those monies back.
I sent in a W-7 Application of IRS Individual
Taxpayer Identification Number on April 18th, 2007 to obtain the identification
Am I correct, that I have to get this id number
before filling out the 1040NR Income Tax Return form?
Also do I fill out the 2006 1040NR form or wait
until the 2007 forms are available as that is the year the monies were won and
the tax taken off.
Also which lines do I put the winnings and
the tax amount withheld.
Any advise would be greatly appreciated.
Thank You for your time.
Could you please email me at cccccccc
when life hands you Lemons, ask for tequila and
Be ALERT, the world needs more
david ingram replies:
This came to a personal email which i do not look
at very often. Even then only 1 or 2% do get answered. This is very late
but will answer your inquiry.
Do you provide a service to recoup the 30% withholding tax from the
If so what are your charges to do the work in total or to provide some
advice to overcome the pitfalls (ie Article number of the Tax
david ingram replies:
PROVIDE THAT SERVICE but The 30% tax is only recoverable if you have in fact
lost money in your gambling. OLDER QUESTIONS FOLLOW
recently had taxes withheld on slot machine wins in Reno, NV.
understand, as a Canadian resident, that I can apply to have the
refunded. Do I have to wait until the calendar year ends to
You have to wait until 2008 for a 2007 refund but you
have to have gambling
losses to offset gains to get a refund.
following is the answer to an older question.
As a non US citizen, you
must file a 1040NR along with a form W7 to get an
ITIN (Individual Taxpayer
The following is a previous answer given in
January to someone who had
received a W2G for a win of $1,200.
For non-residents of the
United States, the withholding is 30% of wins of
$1,200 or more. You
would file a 1040NR to report the winnings and claim
your losses as itemized
Remember that reporting just your win of $2100 and claiming
does not make sense. If you won $2,100 (or any other
amount) and lost that
much, there were more winnings in between which should
be reported even if a
slip was not issued.
Non-residents do not
usually get a W2-G - they are issued a 1042-S
IRS TAX TIP 2004-33
Hit a big one in 2008? With more and more gambling
establishments, the IRS
reminds people that they must report all gambling
winnings as income on
their tax return.
Gambling income includes, but
is not limited to, winnings from lotteries,
raffles, horse and dog races and
casinos, as well as the fair market value
of prizes such as cars, houses,
trips or other non cash prizes.
Generally, if you receive $600 ($1,200
from bingo and slot machines and
$1,500 from keno) or more in gambling
winnings, the payer is required to
issue you a Form W-2G. If you have won
more than $5,000, the payer may be
required to withhold 27% of the proceeds
for Federal income tax. However,
if you did not provide your Social Security
number to the payer, the
amount withheld will be 30%.
The full amount
of your gambling winnings for the year must be reported on
line 21, Form 1040
or the equivalent line on form 1040NR. If you itemize
deductions, you can
gambling losses for the year on line 27, Schedule A (Form 1040).
cannot deduct gambling losses that are more than your winnings.
is important to keep an accurate diary or similar record of your
winnings and losses. To deduct your losses, you must be able to
receipts, tickets, statements or other records that show the
amount of both
your winnings and losses.
For more information on record keeping, see IRS
"Miscellaneous Deductions," or Publication 525, "Taxable and
Income." You may also want to check out Form W-2G or Form 1042-S
Tax Topic 419, "Gambling Income and expenses."
All are available on the
IRS Web site at www.irs.gov. You
may also order free publications and
forms by calling toll free
to this and other similar questions can be obtained free on Air
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred
Snyder of Cartier
Partners and I will be hosting an INFOMERCIAL but LIVE talk
show called "ITS
Those outside of the Lower Mainland will
be able to listen on the Internet
Local phone calls to (604) 280-0600 - Long distance calls to
Old shows are archived at the
SUGGESTED PRICE GUIDELINES - May 17,
ingram's US / Canada Services
US / Canada / Mexico
tax, Immigration and working Visa Specialists
US / Canada Real Estate
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N
Cell (604) 657-8451 -
980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week
Vancouver (LA) time - (please do not fax or phone
outside of those hours as this is a home office) expert US Canada Canadian American Mexican
Income Tax service
pert US Canada Canadian American
Mexican Income Tax service and
David Ingram gives expert income
tax service & immigration help to non-resident Americans &
Canadians from New York to California to Mexico family,
estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence &
consultations are $450 for 15 minutes to 50 minutes (professional hour). Please
note that GST is added if product remains in Canada or is to be returned to
Canada or a phone consultation is in Canada. ($472.50 with GST for in person or
if you are on the telephone in Canada) expert US Canada Canadian American Mexican
Income Tax service and
This is not intended to be definitive but in
general I am quoting $900 to $3,000 for a dual country tax
$900 would be one T4 slip one W2 slip one or two
interest slips and you lived in one country only (but were filing both
countries) - no self employment or rentals or capital gains - you did not move
into or out of the country in this year.
$1,200 would be the same with one rental
$1,300 would be the same with one business no
$1,300 would be the minimum with a move in or out
of the country. These are complicated because of the back and forth foreign tax
credits. - The IRS says a foreign tax credit takes 1 hour and 53
$1,600 would be the minimum with a rental or two in
the country you do not live in or a rental and a business and foreign tax
credits no move in or out
$1,700 would be for two people with income from two
$3,000 would be all of the above and you moved in
and out of the country.
This is just a guideline for US / Canadian
We will still prepare
Canadian only (lives in Canada, no US connection period) with two or
three slips and no capital gains, etc. for $200.00 up.
However, if you have a stack of 1099, or T3 or T4A or T5 or K1 reporting forms,
expect to pay an average of $10.00 each with up to $50.00 for a K1 or T5013 or
T5008 or T101 --- Income trusts with amounts in box 42 are an even larger
problem and will be more expensive. - i.e. 20
information slips will be at least $350.00
With a Rental for $400, two or three rentals for
$550 to $700 (i.e. $150 per rental) First year Rental - plus
A Business for $400 - Rental and business likely
$550 to $700
And an American only (lives in the US with no
Canadian income or filing period) with about the same things in the same range
with a little bit more if there is a state return.
Moving in or out of the country or part year
earnings in the US will ALWAYS be $900 and up.
TDF 90-22.1 forms are $50 for the first and $25.00
each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00
18 RRSPs would be $900.00 - (maybe amalgamate a
Capital gains *sales) are likely $50.00 for
the first and $20.00 each after that.
Catch - up returns for the US where
we use the Canadian return as a guide for seven years at a time will be from
$150 to $600.00 per year depending upon numbers of bank accounts, RRSP's,
existence of rental houses, self employment, etc. Note that these returns tend
to be informational rather than taxable. In fact, if there are children
involved, we usually get refunds of $1,000 per child per year for 3 years.
We have done several catch-ups where the client has received as much as $6,000
back for an $1,800 bill and one recently with 6 children is resulting in over
Email and Faxed information is convenient for the
sender but very time consuming and hard to keep track of when they come in
multiple files. As of May 1, 2008, we will charge or be charging a
surcharge for information that comes in more than two files. It can take
us a valuable hour or more to try and put together the file when someone
sends 10 emails or 15 attachments, etc. We had one return with over 50 faxes and
emails for instance.
This is a guideline not etched
in stone. If you do your own TDF-90 forms, it
is to your advantage. However, if we put them in the first year, the computer
carries them forward beautifully.
CEN-TA Cross Border Services - Tax, Visas, Immigration