Taxes On Dog Racing Winnings

IRS Withhold Tax On Your Dog Racing Winnings? Reclaim Your Taxes On Dog Track Betting

Where Can I Go For Greyhound Betting?

Dog racing is legal in 16 U.S. states. However, a disproportionate number of dog racing tracks are located in Florida. The other states with legal greyhound betting are Alabama, Massachusetts, Arkansas, New Hampshire, Arizona, Oregon, Colorado, Rhode Island, Connecticut, Texas, West Virginia, Iowa, Wisconsin, and Kansas. But Florida is the undisputed leader in dog racing and its related dog racing betting. Its number of tracks and its respective wagers on greyhound betting are larger than all the other states combined.

Is Greyhound Racing Legal In Canada?

Greyhound racing itself is completely legal in Canada. However, dog track betting is illegal. As such, all dog racing in Canada must be done for strictly recreational purposes only. Many Canadian and overseas fans of greyhound racing venture to the US for dog track betting.

Betting On Greyhounds - Where Do Greyhound Racing Fans Go?

It sounds like a silly question, but many people are unaware of greyhound betting locales. Most people betting on greyhounds would naturally head to the closest dog racing tracks. These racetracks not only have their own dog races, but also simulcast the other dog racing tracks' races. Just like horse racing wagering, US greyhound racing tracks utilize pari-mutuel betting.

How Does The IRS Tax Dog Racing Winnings?

If you win big at dog racing betting, you will be taxed at 30% of your dog racing winnings. Withholding taxes for greyhound betting are levied in the exact same way as the withholding taxes for horse racing. Dog racing winnings are taxed at 30% if the following conditions are satisfied:

    * The dog racing wager wins $600 USD above the original bet; and

    * The dog racing winnings are 300 times the original wager.

For example, if you engage in dog racing betting and wager $3 USD on a 300:1 long shot, you will receive $900 USD, but be immediately taxed $270 USD (30% of $900 USD). Conversely, if you wager $300 USD on a 3:1 greyhound and subsequently win $900 USD in dog racing winnings, you will not be assessed any U.S. taxes, as the winning bet was below the 300:1 ratio.

Similarly, someone wagering $1 USD on a 500:1 ultra long shot will not be assessed any taxes on dog racing winnings, as the total payoff was less than the $600 USD above the original bet.

Generally speaking, dog racing winnings that do not conform to both of the above outlined criteria are not taxed by the US government. However, some Indian tribal greyhound tracks in the United States may assess the 30% betting tax on all dog racing winnings (without the need to meet a specified threshold or ratio) for US non-residents.

How Do I Recover Withheld Dog Racing Taxes?

Unfortunately, like many other forms of gambling in the United States, withholding tax may be levied when you are betting on greyhounds. Luckily, for Canadians, gambling losses in the US (on taxable games) in the same taxation year are deductible against your dog racing winnings. Many dog race winners receive a full refund on their dog track betting taxes. In order to receive a full IRS tax refund, dog racing winners must have US gambling losses that are equal or greater than their dog racing winnings.

As a Canadian, if your combined gambling losses are not as high as your winnings from betting on greyhounds, you could still be eligible for a partial tax refund. You may be asked to justify your gambling losses by the IRS. Thus, you should always keep a record of your gambling winnings and losses while in the United States. Remember to keep any old US lottery tickets, betting stubs, and any materials related to your gambling activity.

International dog racing winners from treaty countries can apply to obtain a full tax refund. There is no need to claim US gambling losses against US dog racing winnings. International gamblers from non-treaty countries will need to claim US gambling losses against their dog racing winnings for a partial or full gambling tax refund.

How Can US Gambling Refund Help You Recover The Tax On Your Greyhound Winnings?

Benefit from US Gambling Refund's many years of dealing with the IRS and its very complicated tax refund system. US Gambling Refund and its professional employees have many aggregate years of experience with both the Canadian and American tax departments. As such, we can quickly and successfully recover your withheld taxes on dog racing winnings.

If you are a dog racing winner and were assessed 30% IRS withholding tax, contact us and request a tax application package to recover your taxed dog racing winnings. Click the link below to claim back your withheld dog racing taxes.