Taxes On Keno Winnings

IRS Take 30% Of Your Keno Win? Reclaim The Taxes On Your Keno Payout!

For A US Non-Resident, When Is A Keno Jackpot Taxed?

The IRS' rules for taxing US nonresident keno winnings are relatively straightforward. Any US nonresident with a winning keno ticket that wins $1500 USD or more (after deducting the original cost of the wager) is taxed at a rate of 30%. If your winning keno ticket is for $1499.99 USD or less (after deducting the original cost of the wager), then it is your lucky day. You can claim the entire amount of your keno payout without the intrusion of Uncle Sam. However, if your winning keno ticket is for $1500 USD or more (after the original wager deduction), the taxes will be automatically withheld by the gaming establishment, and your keno payout will be 30% less than the full amount of your keno win.

Despite the previously outlined IRS rules for keno tax at most US gambling venues, the IRS also mandates US casinos and other US gambling establishments run by Indian tribal governments to assess the 30% keno tax on all keno winnings (without the need to meet a specified threshold) for US non-residents.

Can I Get My Keno Winnings Back From The US Government?

If you are Canadian and have gambling losses of any kind from the United States in the same taxation year, you can recover part or all of the keno money withheld by the IRS. For instance, if you have a $2000 USD keno win, the IRS would have subjected you to $600 USD (30% of $2000 USD) of withholding taxes. You can get a full tax refund of the withheld taxes ($600 USD) if you have at least $2000 USD of US gambling losses in the same taxation year to deduct against your keno payout.

What happens if you have only $1000 USD of gambling losses from the US in the same taxation year to claim against your $2000 USD keno jackpot? Then, you would only get a partial tax refund of the gambling taxes withheld by the Internal Revenue Service. To calculate the partial tax refund that you should expect from the IRS, you would start by deducting your gambling losses in the same taxation year from your keno jackpot. Your net gambling income for the taxation year should be $1000 USD ($2000 USD keno win subtracted by $1000 USD of gambling losses). At a tax rate of 30% on your net gambling income of $1000 USD, the IRS should have withheld $300 USD instead of $600 USD deducted at the time of your keno win. Thus, you should expect to receive the difference of $300 USD as a tax refund.

There is basically no downside to applying for a refund of your withheld keno taxes. The vast majority of gambling winners generally have gambling losses, and thus should be eligible for a tax refund from the IRS.

If you are an international gambler from a treaty country, you can anticipate a full US tax refund. You do not need to report gambling losses in order to obtain a tax refund from the IRS. However, if you are an international gambler from a non-treaty country, then the opposite is true. You will need to keep gambling loss records in order to obtain a partial or full gambling tax refund.

What Documentation Does A Keno Winner Need?

Non resident keno winners to the United States are given an IRS Form 1042-S at the time of the keno payout. You will need this IRS form as proof of your keno winnings. If you have lost or misplaced this form, the gambling establishment is obliged to issue you a replacement copy.

Canadian and international gamblers from non-treaty countries should keep any losing keno and lottery tickets, wagering tickets from dog and horse racing, records of slot machine plays, etc. In case you hit a jackpot and are assessed gambling taxes, your old gambling stubs can be used to support your claims of gambling losses. Gamblers should also make a note of the date, time, location of their various other US gambling activities. Cancelled checks, airline tickets, and old hotel receipts, etc., can be used to show one's presence in American gambling locales.

Keno Winners: How Can U.S. Gambling Refund Help You?

Many US nonresident keno winners forgo their opportunity to reclaim their taxes on keno winnings. Most or all of the keno payout is legally yours, except the foreign tax codes are not readily known to most people. US Gambling Refund is knowledgeable in both US and Canadian tax codes. We will obtain the largest refund on your partially withheld keno jackpot, with minimum fuss to you.

If you have been assessed withholding taxes on your keno jackpot, and are ready to obtain a keno tax refund, contact us for a tax application package. With minimal effort, you can easily recover your withheld keno taxes.