Canadian winners are eligible to claim either a full or partial tax refund of their 30% taxed gambling winnings withheld by US casinos and other gambling establishments.

According to the Canada USA Tax Treaty, a Canadian resident can offset their gambling losses against their gambling wins which are reported on IRS Form 1042-S. Gambling losses in the United States from taxed  gambling activity (such as slots, non-winning horse racing and dog racing wagering tickets, non-winning US lottery tickets, bingo losses, etc.) can be used to decrease your taxes on winnings. Generally, most people have more gambling losses in a given year than gambling winnings. As such, a full refund of the withheld tax can be claimed back.

In order to claim back the 30% US casino tax withheld by the IRS, you need to fulfill the following IRS refund requirements:

Gambling Tax Refund Eligibility

Canadians: Recover Your Taxes On Winnings

International Gamblers: Reclaim Your Taxes On Gambling Wins

All international gamblers are eligible to claim a full or partial gambling tax refund from the Internal Revenue Service.

US non-resident gamblers from qualifying countries are eligible to claim a FULL refund of their US gambling tax withheld by American casinos and other gambling establishments. Besides the US Canada Tax Treaty, the US has a tax treaty with many other foreign countries. If you are a resident of any one of the following countries, your gambling income is not taxable by the United States: 

* Austria

* Belgium

* Bulgaria

* Czech Republic

* Denmark

* Finland

* France

* Germany

* Hungary

* Iceland

* Ireland

* Italy

* Japan

* Latvia

* Lithuania

* Luxembourg

* Netherlands

* Russian Federation

* Slovak Republic

* Slovenia

* South Africa

* Spain

* Sweden

* Tunisia

* Turkey

* Ukraine

* United Kingdom

IRS Refund Requirements

1     Be a US non-resident at the time of the gambling win. 

2     Provide proof of your US non-resident status. 

Submit an original or certified copy (from the issuing passport office) of a valid and current passport.

Alternatively, you can submit your original driver's license AND birth certificate OR citizenship card. At least one piece of identification must have a photo, and all identification must be current and not expired. Birth certificates are considered to be current identification as there is no expiry date on the document.

If you submit your original identification documents to the IRS, they will keep it for a period of 2-3 months. The IRS will return the documents to you by regular mail.

Please note that certified copies of identification documents by notaries, lawyers, accountants, etc., are NOT accepted by the IRS.

3     Have taxes on winnings withheld by a USA casino or other gaming facility. 

4     File gambling wins only for the past 3 years. 

5     Provide the 1042-S IRS tax form issued by the US casino or other gaming establishment. 

The 1042-S IRS form states the amount of withholding tax that was withheld from your gambling win.

If you have lost your form 1042-S, contact the accounting or tax department of the US casino or gambling establishment for a replacement.

6     Have US gambling losses in the same year as your US gambling wins.  

US gambling losses can only be deducted up to the amount of the US gambling winnings. You cannot deduct gambling losses that are more than your gambling winnings. Applies to Canadian and international gamblers from non-treaty countries only.

Ready to claim a gambling tax refund? Request a casino tax refund application package now.

Don't see your country in the above list? You don't need to worry. According to a recent court ruling, you are now eligible to claim back the tax withheld on your gambling income. To be eligible, you must have US gambling losses to deduct against your taxed gambling income. You could be eligible for a partial or a full gambling tax refund.