Refunds Of The Taxes On Slot Machine Wins

Taxes On Slot Machine Wins in the US?

If you are reading this, chances are you are a Canadian gambler who has had the IRS taxes on slot machine wins imposed on your slot machine jackpot. The taxes on slot machine wins are imposed whenever a US slot jackpot hits or goes over $1200.00 USD. The Internal Revenue Service's (IRS) taxes on prize winnings are set at 30% of the jackpot, close to its top marginal tax rates.

When Are the IRS Taxes On Prize Winnings Imposed?

The IRS' taxes on prize winnings are imposed on all eligible gambling wins in the United States. The minimum threshold for taxes on slot machine wins is set at $1200.00 USD, whereas the minimum threshold for keno taxes is $1500.00 USD. The minimum threshold for horse racing taxes is $600.00 USD over and above the original wager, and the horse racing jackpot has to be at least 300X the original wager. Sound confusing? More information about the taxes on prize winnings can be found at http://www.usgamblingrefund.com.

How Can I Obtain A Refund for The Taxes On Prize Winnings?

The US-Canada tax treaty allows for Canadian gamblers to receive equal treatment under the US code as their American counterparts. American gamblers generally obtain IRS tax refunds for their taxes on prize winnings, including taxes on slot machine wins. Yet Canadian gamblers generally do not file applications for IRS tax refunds, and very few US and Canadian bookkeepers are willing or even able to pursue cross border IRS tax refunds. Luckily Certifying Acceptance Agents have been licensed by the IRS to pursue cross border tax refunds for US non-residents. Certifying Acceptance Agents have the requisite knowledge of tax laws to help Canadian gamblers enjoy more of their gambling wins.

Is It Tax Free Gambling?

Canada enjoys tax free gambling. Wins from Canadian casinos are not taxed because they are considered to be windfall income. The US does not have tax free gambling, but since gambling losses can be deducted against gambling wins, and because the vast majority of gamblers have losses that are equal or greater than their corresponding gambling wins, the vast majority of gamblers pursuing IRS tax refunds will receive a full refund of their taxes on prize winnings. Even for the minority of Canadian gamblers whose losses are smaller than their corresponding gambling wins, a partial refund of gambling tax will be attained. Even though technically the gambling wins are taxed; if the Canadian gambler pursues his/her rightful refund under the IRS tax code, and is among the overwhelming statistical majority of gamblers with gambling losses, the Canadian gambler will pay little or no IRS gambling tax.