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Originally Posted by smbruin22
anyway the article seemed to suggest that you had to properly document to the IRS that you had poker losses to offset the winnings and therefore your net poker income is zero.
I think that is accurate. I am not Canadian so I ain't got any first-hand experience with it, but I've read a couple blurbs including straight from the US IRS and it pretty much says EXACTLY that. You can file a US non-resident tax form and basically go through all those gyrations and declare the US poker winnings, deduct your documented US losses, and file for a refund.
http://www.irs.gov/businesses/small/...106252,00.html
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Gambling winnings of Canadian residents are subject to NRA withholding at 30% on the gross proceeds from gambling won in the United States. However, Article XXII of the Canada - U.S. Income tax treaty entitles residents of Canada who are taxable by the United States on gains from wagering transactions to deduct U.S. source losses from U.S. source wagering transactions. Canadian residents should file Form 1040NR (PDF) to obtain a refund of U.S. taxes withheld from the gambling winnings, if applicable.
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what are these services (which i've heard are useful) providing?
Far as I know, they fill out the 1040NR form for you using whatever documentation you provide them. Sounds like 10 minutes of work if you know what you're doing. Unfortunately, if you don't know what you're doing, the 1040NR looks painful to navigate. I'd think if you saw an example of a simple one filed just for gambling income, though, you'd be able to trivially do it yourself.
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and do the poker losses have to be in the USA too?
"U.S source wagering transactions". Sorry.