Casino Tax Refund and the IRS

In the United States Casino winnings tax is payable on gambling income and is considered by the IRS to be taxable income and must be reported on your federal tax return. Gambling income includes, casino winnings, winnings from lotteries, and horse races. Cash winnings as well as the fair market value of prizes such as cars and trips etc. are eligible for US casino tax.  A payer is required to issue you a Form W-2G or Form 1042-s if you receive gambling winnings subject to Casino tax. All gambling winnings must be reported as income even if no casino winnings taxes are deducted. Foreign nationals such as residents of Canada and the United Kingdom may be exempt from paying casino winnings tax and be subject to a full casino tax refund due to provisions within their tax treaties with the United States. It is advised for Foreign Nationals claiming tax treaty provisions to use the services of an IRS Certifying Acceptance Agent to effect a casino winnings refund.

It is important to keep an accurate diary or similar record of your gambling winnings and losses in order to claim your casino tax refunds. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.

Diary of winnings and losses. You should keep an accurate diary or similar record of your losses and winnings. Your diary should contain at least the following information. - The date and type of your specific wager or wagering activity. - The name and address or location of the gambling establishment. - The names of other persons present with you at the gambling establishment. - The amount(s) you won or lost. Proof of winnings and losses.   In addition to your diary, you should also have other documentation. You can generally prove your losses through , wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment.

The following game specific recordkeeping suggestions are intended as general guidelines to help you establish your gambling winnings and losses. They are not all-inclusive. Your tax liability depends on your particular facts and circumstances.

Keno.   Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records.

Slot machines.   A record of the machine number and all winnings by date and time the machine was played.

Bingo.   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets.

Racing (horse, harness, dog, etc.).   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Supplemental records include unredeemed tickets and payment records from the racetrack.

Lotteries.   A record of ticket purchases, dates, winnings, and losses. Supplemental records include unredeemed tickets, payment slips, and winnings statements.

source: irs.gov

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Further information on the tax treatment of Casino winnings tax and the IRS for foreign nationals visit www.casinotaxrebate.com