Need A Us Gambling Refund? A Canadian Irs Tax Preparer Can Do The Job
Obtaining A US Gambling Refund Just Became Easier
If you are a Canadian and gamble in the United States, you may end up inadvertently and unnecessarily paying US gambling taxes. The United States taxes gambling wins at close to its highest marginal tax rates. Unfortunately the vast majority of both US and Canadian accounting and law firms are unsure of the methods to obtain a US gambling refund.
What Is A Form 1042-S?
If you are a Canadian gambler and you were issued an IRS Form 1042-S, it means the IRS has taken 30% from your original gambling jackpot, and you are eligible for a US gambling refund. Form 1042-S is issued by the US Internal Revenue Service to U.S. non residents when they are subject to 30% withholding tax. Sometimes Form 1042-S is issued for rental income, as many Canadians have invested in American real estate. Casinos are required by law to issue Form 1042-S to Canadian gamblers whose US jackpots exceed a certain monetary value.
Seeking Refund Management Services
The United States government has licensed a small number of professional firms to act on behalf of Canadian clients. This entity is known as a "Certifying Acceptance Agent", and act as a Canadian IRS tax preparer. Apart from being licensed by the US, the Canadian IRS tax preparer (Certifying Acceptance Agent) is well versed in US tax laws and has the ability to obtain a US gambling refund from the Internal Revenue Service. Navigating the various IRS codes and forms is a daunting task, luckily a Canadian IRS tax preparer can do the job.
How Are Canadians Eligible for a US Gambling Tax Refund?
The US-Canada Tax treaty stipulates that Canadians are entitled to the same treatment as US citizens for US taxes. American citizens are taxed on their gambling winnings, but are also allowed to deduct gambling losses from their gambling winnings. Most gambling winners can deduct ALL or at least some of their gambling losses, thus the tax burden is lessened considerably.
What Processes Are Used By Canadian IRS Tax Preparers?
A Canadian IRS tax preparer generally uses a two step process to obtain a US gambling refund. The Canadian IRS tax preparer first obtains a U.S. Individual Taxpayer Identification Number for the client. This will generally take six to eight weeks. Then on the basis of the USA-Canada tax treaty, a tax return is submitted on behalf of the Canadian client. The refund management services (i.e. the services provided by the Canadian IRS tax preparer) generally takes three to four months.
