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Thread: Looking for experiences with tax rebate services!!!

  1. #1


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    Looking for experiences with tax rebate services!!!

    Hello guys,
    This is my first post in this forum and I'm in need of help. I hit the jackpot last week, but they gave the sum only after deducting the taxes, which is about 30%. I did hear that the U.S. casinos have imposed taxes on the winnings, but 30% is too much! I saw the "Foreign Person's U.S. Source Income Subject to Withholding" form #1042-S only once I got the prize money. I had to get it back somehow, so I contacted a tax rebate service in Canada.
    And given the current pandemic situation and all the elections, I don't know how long it will take to claim it. I also don't know if I should go back or stay in the U.S. until I get it. I was on a work visa, which will expire next month. So I wanted to hear the experiences of people who have been in a similar situation.
    Any help would be appreciated here.
    Thanks!

  2. #2


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    Quote Originally Posted by Poker View Post
    Hello guys,
    This is my first post in this forum and I'm in need of help. I hit the jackpot last week, but they gave the sum only after deducting the taxes, which is about 30%. I did hear that the U.S. casinos have imposed taxes on the winnings, but 30% is too much! I saw the "Foreign Person's U.S. Source Income Subject to Withholding" form #1042-S only once I got the prize money. I had to get it back somehow, so I contacted a tax rebate service in Canada.
    And given the current pandemic situation and all the elections, I don't know how long it will take to claim it. I also don't know if I should go back or stay in the U.S. until I get it. I was on a work visa, which will expire next month. So I wanted to hear the experiences of people who have been in a similar situation.
    Any help would be appreciated here.
    Thanks!
    Just to clarify, we’re talking a bout a slot machine win versus a table game win, as no deductions should have occurred on a table game win, except possibly with a large side bet win. So, lots of money involved?

    Normally, the answer would be simply to file a US tax return. There is a tax treaty between Canada and the US whereby you, as a Canadian, living in Canada would be entitled to a refund (don’t recall if it’s all) of taxes withheld. However, you’ve indicated that you were in the US on a work visa. This may drastically change the situation as you were earning within the US, not in the US on vacation.

    Youve also indicated that you’ve contacted a tax rebate service in Canada, further intimating this was a real jackpot likely involving lots of money. Those guys are going to decimate your refund, if applicable, by their fee structure which I assume is a (hefty) percentage (1/3 to 1/2) of that tax refund. In other words - ask.

    If all of the above is correct, you should seek out an accounting professional specializing in International Taxation. They will charge a fee, and the job should get done right. Now, it just so happens that one of my best friends is a retired CA (in Canada) CPA (in USA) who specialized in International Taxation. He likely wouldn’t be interested in taking care of this, but he could make a recommendation. He knows little if anything about gambling, however, the salient issue appears to be the fact you were working in USA. Secondary point is who does the US tax return, which, if I’m correct in percentages, means you’re far better off paying a fair sized fee based bill versus percentage.

    With your permission, I would copy paste this to him. First, how much was the win, what game was it based on and any other pertinent info.

  3. #3


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    Suggest you contact Russel Fox - http://claytontax.com/nevada/

    He does a lot of tax work for professional gamblers. I haven't used him personally, but I know people who do. He recently did a Q&A on the Gambling with an Edge podcast (on youtube)

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