How To Get Money Back From Gambling Taxes
IRS Kept 30% Off Your Winnings?
- The United States IRS imposes 30 percent casino tax on Canadians winning in Las Vegas. This is a mandatory tax rule followed by all US based casinos and other gambling hubs. So do not be surprised if you can not get all your winnings from the casino. However, you can still get back your money through a tax rebate.
- You need to do your part to get a refund and offset the game show winnings tax rate and a good company will let you know all of the eligibility requirements necessary so the process runs smoothly. Apply now for free to have Canada’s #1 gaming & casino tax refund agency handle your refund.
- I also advise calling Refund Management Services, the forms are too difficult to negotiate, they will get all the money back for you less their fee, but it is worth it, you have to apply for an ITIN number first, before you can even file the income tax return, you need that number first, you will need to get your passport certified at the passport office, you can apply for the refund in 2014.
All gambling winnings are taxable income—that is, income subject to both federal and state income taxes (except for the seven states that have no income taxes). It makes no difference how you earn your winnings-whether at a casino, gambling website, church raffle, or your friendly neighborhood poker game.
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US Tax Recovery is a withholding tax recovery service that specializes in casino tax recovery on behalf of Canadians and other non-US citizens. Each year, millions of visitors to the United States win money in legal casinos, and find themselves having to pay a 30% withholding tax on these winnings. US. Tax Recovery will determine your eligibility for a full or partial US tax refund, and will assist you in recovering the taxes paid from the IRS (Internal Revenue Service) up to three (3) years after your winnings were originally taxed. We help Canadians and other International visitors to the United States claim their casino tax refund on the 30% gambling winnings tax US casinos and other gaming venues are required to withhold.
Casino Rebate – Refund
US Tax Recovery has made this process simple and straightforward. Our professionals take care of everything, so you can sit back and relax while you wait for your US casino tax recovery.
Refunds normally take between 4-6 months to process from the time you file.
1When you first contact US Tax Recovery, we will answer any questions you might have. Once you request our services, we will provide you with a packet containing informed and comprehensive details about our company and the services we provide. This package also contains documents for you to complete to start the rebate process, contact information and additional resources for you to keep on file for future use.
2Upon receiving your winnings and paying your withholding taxes at the Casino or Gaming Facility, you were given a Win Slip or a Form 1042-S, Foreign Person’s US Source Income Subject to Withholding, which states the amount of tax paid on your gaming winnings. Simply provide US Tax Recovery with all your documentation regarding the withholding tax and your tax rebate application is underway. If you have lost or misplaced your Win Slip, US Tax Recovery can easily request a copy from the Casino or Gaming Facility where the tax was paid (step three). There is no additional cost for this service.
3Once we have your Win Slip, US Tax Recovery will submit an application, on your behalf, to the IRS. The application is submitted in order to obtain an IRS Individual Taxpayer Identification Number (ITIN). This process takes between 6 and 10 weeks. If you have already been issued an ITIN, US Tax Recovery will immediately proceed to Step 4, avoiding the 6 to 10 weeks processing time. Once you have been assigned an ITIN, it is yours to keep and reference for years to come, expediting the recovery of your gambling winnings tax in the future.
4Once your ITIN has been assigned, US Tax Recovery prepares and submits a Non-Resident Tax Refund on your behalf. Approximately 6 to 10 weeks after we submit this form, you will receive a refund, mailed to your home directly from the IRS. All you have to do is notify US Tax Recovery that you have received your refund and we will send you an invoice in the mail.
USTR wanted to say thanks for your help and guidance in getting our tax money from the IRS. Your people were friendly and fast and I appreciated how professional everyone was. We were dragging our feet in getting the paperwork done and your follow-up made us get it done a lot faster. We have both received our cheques and in the future we hope we need your services again. Thanks again.
U.S. Tax Recovery recovered over $3,000 of my winnings. The recovery process was so simple; U.S. Tax Recovery handled everything for me. Before I knew it, I had my winnings back in my hands! Thanks U.S. Tax Recovery!
Just wanted to let you know I did get your telephone message. The cheque arrived yesterday! Thank you so much for your personal and professional help and such great, quick service. I will be sure to recommend you and your firm to my friends and will certainly be using you again in the future (well, hopefully I will win again and need your services!) Till next time…
Received cheque in mail. Very professionally done. I will recommend your company to anyone who could use your services. Thanks again.
Hi Mo, Thank you very much for the immediate response. This was a perfect example of your customer service, and it’s excellent. Thanks again and have a good weekend.
The last thing I expected to find in my mailbox yesterday was a refund cheque for $306.06. So quick and no hassle. You guys are great! Thanks.
I got the cheque yesterday! Thanks! I am happy to know now about your services and will be recommending you. Thank you.
I would like to thank you for your efforts in obtaining the monies the U.S. had withheld as a result of a small win in Las Vegas. Should I have any need of your services in the future I will be contacting you… Many thanks.
Thank you for everything. I appreciated your work.
The upside of having to pay taxes? It means you make enough money to have Uncle Sam want a cut. Congratulations!
The Internal Revenue Service sets a minimum income on which it will collect taxes. Unfortunately, it’s not a simple one-size-fits-all threshold. In general, how much you can make in a year before you face a tax bill depends on a few factors: your filing status, your age, and whether you’re being claimed as a dependent.
How Much Do You Have to Make to Owe Taxes?
If you’re not a dependent, here’s a cheat sheet for you. If your gross income is equal to or more than what’s listed in the table below, based on 2019 requirements, you’d need to file a tax return. (You can use the I.R.S.'s interactive tool to find out if you should file taxes. For state filings, TurboTax offers a list of states’ requirements; but, generally, if you file a federal return, you should also file a state return.)
Filing Status | Under Age 65 | Age 65 and Older |
Single | $12,200 | $13,850 |
Married, filing jointly | If both spouses are under age 65: $24,400 | If one spouse is 65+: $25,700 If both spouses are 65+: $27,000 |
Married, filing separately | $5 | $5 |
Head of Household | $18,350 | $20,000 |
Qualifying Widow(er) | $24,400 | $25,700 |
The thresholds for dependents are based on the amount of your earned income, unearned income and gross income, as well as whether you’re married or single and blind or not. Note, too, that there are a number of special situations—other than being a dependent—that may require you to file a return, even if your income is less than the minimums. For example, if you’re self-employed and make just $400 or more, you have to file taxes.
You can use the Interactive Tax Assistant tool at www.irs.gov to figure out if you’re in one of those special situations and whether you need to file a return. You just have to answer a bunch of questions—mainly about your relationship and income—all of which the site estimates will take 12 minutes to answer.
Back up. What exactly is gross income?
It’s all the money you’ve made in the tax year. For most people, that mainly includes earned income from your salary, wages, tips or bonuses. It also includes unearned income, like dividends and accrued interest, as well as any gambling winnings. It does not include tax-exempt income, such as child support payments, most alimony payments, workers’ comp, and more.
Gross income should not be confused with your adjusted gross income (AGI) or your taxable income. You can determine your AGI by taking your gross income and subtracting certain deductions, including contributions to a traditional IRA, 401(k) and other qualified retirement plans, interest paid on student loans and contributions to a health savings account. Taxable income is your AGI minus your standard deduction or any itemized deductions you claim. (You cannot claim both the standard and itemized deductions. Post-tax reform, most people are better off taking the standard deduction, which for the 2019 filing year goes up to $12,200 for single filers and $24,400 for joint filers.)
So if my gross income falls below those minimums, I don’t have to file a tax return? Correct. But it might be a good idea to file anyway. That’s because you may qualify for certain tax credits and get a little extra cash from Uncle Sam, even if you owe nothing.
What tax credits are available to me?
How To Get Money Back From Gambling Taxes Owed
If you owe little to no taxes, you should focus on tax credits that are refundable. That means you’ll be able to cash them in even if they’re greater than what you owe. Most tax credits are non-refundable, meaning they can reduce your tax bill, but won’t pay you anything extra. So, if you owe $300 in taxes, and you score a tax credit worth $500, if it’s refundable, you can pocket the $200 difference, whereas if it’s non-refundable, you’d just wipe away your $300 bill and call it a day.
How To Get Money Back From Gambling Taxes Due
One refundable credit you should see if you’re eligible for is the Earned Income Tax Credit (EITC), meant to benefit workers with low to moderate income. In general, you can claim it as long your total earned income is at least $1 and your AGI is less than specified limits, which depend on your filing status and how many qualifying children you claim on your return. For 2019, those limits range from $15,570 if you’re single with no kids to $55,952 if you’re filing jointly and have three or more kids. Also, your investment income must be $3,600 or less for the year. And the corresponding maximum amounts you can get with the EITC range from $529 to $6,557. For the 2018 tax year, 25 million eligible taxpayers claimed the EITC, collecting an average $2,488 credit.
A partly refundable option is the Child Tax Credit (CTC), worth up to $2,000 per qualifying child under age 17. The credit amount is reduced for single filers with a modified AGI (that’s your AGI plus certain deductions including student loan interest, half your self-employment tax and IRA contributions) of $200,000, or $400,000 for married couples filing jointly. And up to $1,400 of that credit per child is refundable.
The American Opportunity Tax Credit (AOTC) is also partly refundable. It’s worth up to $2,500 a year for each eligible student, and 40 percent of it—up to $1,000—can be refunded to you. To claim the full credit, your MAGI must be $80,000 or less, if you’re a single filer (or $160,000 or less, if you’re filing jointly), and to claim it at all, it must be $90,000 or less (or $180,000 or less for joint filers).
Do I have to claim the credits?
No, you never have to take advantage of tax breaks, but why wouldn’t you? Yes, filing taxes can be an intimidating hassle. But it can be well worth it. And taking advantage of any available tax breaks while minimizing your tax bill is a smart way to give yourself a financial boost.
Acorns does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax or legal questions and concerns.