Taxes On Bingo Winnings

IRS Deduct Taxes Off Your Bingo Win?  Recover Your Bingo Tax From The US Government!

When Are Bingo Wins Taxed?

If you win a bingo jackpot that is at least $1200 USD, your bingo winnings will be reduced by a withholding tax of 30%. However, if you have several bingo wins that add up to $1200 USD or more in a taxation year, you will not be taxed. A further exception is as follows: some Indian tribal bingo halls and casinos in the United States may assess the 30% bingo tax on all bingo winnings (without the need to meet a specified threshold) for US non-residents.

Why Do International And Canadian Bingo Players Visit US Bingo Halls?

There is no bingo tax on bingo jackpots in most international countries and in Canada. So, it is a bit peculiar as to what draws bingo players to play at bingo halls in the United States. Zero taxes compared to larger bingo wins taxed at a rate of 30%. As with most types of gambling, American bingo halls offer larger jackpots than their Canadian and international counterparts. This is especially true in the case of progressive bingo jackpots, which benefit from having many bingo players in multiple bingo halls.

How Are Bingo Taxes Calculated?

Any bingo win of $1200 USD or more will be taxed at a rate of 30%. For example, a single bingo jackpot of $2000 USD is taxed $600 USD ($2000 USD X 30% withholding tax). The gambler is left with $1400 USD after the bingo taxes are withheld. For Canadians with US gambling losses in the United States equal or greater than their respective gross bingo winnings, all IRS bingo taxes can be refunded. In this example, the gambler must have $2000 USD or more in US gambling losses to be eligible for a full IRS tax refund.

If gambling losses are not as large as the bingo jackpot, part of the bingo taxes can be refunded. Using the same $2000 USD bingo win in the above example, what happens if there were $1000 USD in US gambling losses? The IRS will calculate the bingo taxes by subtracting the gambling losses from the taxable bingo win. $1000 USD of gambling losses subtracted from $2000 USD taxable bingo jackpot will leave $1000 USD in taxable gambling wins. $600 USD of gambling taxes were deducted, but only 30%, or $300 USD in bingo tax are legally necessary. Thus, the gambler can expect a refund of $300 USD in withheld bingo taxes.

International bingo winners from treaty countries will automatically obtain a full refund without needing to claim their gambling losses against their bingo winnings. International bingo players from non-treaty countries are required to claim US gambling losses against their taxable bingo wins to obtain a gambling tax refund.

What Documentation Do Bingo Winners Need?

If you have won a bingo jackpot in the US, you were issued an IRS Form 1042-S. If you have lost or misplaced this form, you can obtain a copy of the IRS form from the issuing bingo hall or parlor. Bingo players should also keep supporting documentation of their various US gambling losses. Old lottery tickets, race stubs, records of slot machine plays are all considered to be supporting evidence.

Bingo Winners: How Can US Gambling Refund Help You?

The IRS tax codes are complicated and difficult to understand. US non residents attempting to reclaim their IRS taxes on bingo winnings are forced to navigate a jungle of different agencies and regulations. Avoid the IRS paperwork and hire U.S. Gambling Refund to recover your withheld bingo winnings. Click the link below to apply for an IRS tax refund on your withheld bingo taxes.