I am a canadian, & I have been lucky enough to make few money finish in poker'tournements in USA in 2005, 2006 & 2007. Like U probably know, most casinos withhold 30% of the money-finish, & even if I have an ITIN'number.

My father is an accountant, & wasn't familiar with american' taxes. So he has made his small investigation. He has found that there was a treaty between Canada & the US named : Convention Between Canada and the United States of America With Respect to Taxes on Income and on Capital ( http://www.fin.gc.ca/treaties/USA_e.html ) especially article XXII & XXV, that make in sort that as a canadian citizen; I don't have to pay federal taxes in the US. SO I was refunded everything for the years 2005 ( 8000$ ) & 2006 ( 3000$ ), however, for 2007, the IRS decide to donot recognize this part of the treaty anymore. That's what was told to my father by the canadian'consulate.

But lately I was told that some canadian 'compagnies were able to have a refund even for the year 2007. I've check on google & within 5 minutes I saw 3 of them.

So I would like to know which one is my best option, as cheaply as possible. They don't talk about how much they charge, if it's to the % or an hourly'rate.

Any kind of help would be appreciated.

-jpp

The rule for casinos is that they are required to withhold from Canadians' winnings 30% (when withholding is required).

For you, the tax treaty allows you to file Form 1040-NR and get back some to all of your taxes. You can get back money if you have gambling losses that you can take against winnings. If, though, all you have is one win with withholding (say, $10,000 won, and $3,000 withheld), you won't get anything back.

The IRS must obey tax treaties (treaties are considered to be laws). You do have to, when completing Form 1040-NR, note the section of the tax treaty that you are using to claim your refund. And the group that handles 1040-NR's is known to be on the slow side. But I'm unaware of any problems with individuals who are entitled to refunds filing Form 1040-NR and having any problems collecting the refunds.

-- Russ Fox

The companies that provide refund services are overpriced.
Earlier thread:
http://forumserver.twoplustwo.com/sh...167&highlight=

Can anyone tell me what the situation is for UK players coming to Vegas? I googled it and saw the UK has a tax treaty with the US - does that mean 30% is not withheld? There is no tax on gambling winnings in the UK so if I had to somehow get a rebate once I got home I would have no idea how to go about it. TIA.

If you cash go to the cage with your passport, ask the cashier to get you an ITIN number, there will be some forms to fill out but once done they won't withhold any money. Take a note of your ITIN as it can be used in the future and simplifies things if you cash again in that or any another casino.

Thank you, that is the most awesome news!

According to that threaty, we ( canadian ) don't have to claim any losses to have a refund. If I understand well, a canadian who's studiing in the U.S., & find a part time in a McDonald in the U.S., he doesn't have to pay taxes on this income to the U.S., but has to fill that income in his usual Canadian'tax'report. An other exemple would be a professional american athlete who play for a canadian'team, money is withheld for federal'tax on his paycheck, and according to this treaty the Canada his suppose to send a notice to the IRS about the income + refund the athlete.

Again, that's the way I understand it, & I might be completly wrong, but I don't think so.

- jpp

That's definitely not my understanding. IRS web pages pretty much say exactly what Russ says. You're gonna pay tax on your poker winnings offset by losses. And Russ is a well known accountant who writes about this sorta stuff all the time, so I would go with his understanding until proven otherwise.

From http://www.irs.gov/businesses/small/...06252,00.html:

well, for 2005 & 2006, I 've received full refund without to show any "losses", but they have decline my refund'request for 2007.

I just would like to be sure that I understand well; lets suppose the following scenario; I go to vegas, & play a poker'tournement that cost 1000$, & I win 100 000$. & I it's the only gambling I do in the US during the year. They would withhold 30 000$. So I can only sustract the 1000$ that I have buy-in, that'S my only "losse", & the only refund, will be an adjusment because my income will be 99 000$, so I would be refund 300$.

Too, what would happen, if I put in my "losse" that I have 100 000$ in cash game, I canot prove it, put they can't prove the opposite neither.

-jpp

That's the way I read it.
You really expect a US taxpayer to help you figure out how to cheat on your US tax bill? More Loonies! Send us more Loonies!

All-in all, it's unfair that as a Canadian, we have to pay taxes to the u.s., when on the opposite, if an American poker player make a money finish in Canada, and probably anywhere else in the world, he's not going to be "forced" to pay a tax to this foreign country.

Too, I understand that an american who play all around the world as to pay taxes to USA on his total income, so if for exemple, he has a "loss" in France & Australia, he can substract it from his "wins" from the U.S. but that's something that a canadian can't do when he makes a money finish in the U.S. & he's taxed, because the IRS only accept the "losses" that were made on the U.S.'soil.

-jpp

Sure, it's unfair. Most of the US Tax Code is unfair, but it's the law. So is the US-Canada Tax Treaty. Like it or not, your diplomats and ours negotiated this, and Canadian gamblers didn't do as well as British gamblers. But at least you did better than Australian gamblers. While the US and Australia have a tax treaty, gambling is not covered by the treaty and Australian gamblers lose 30% of their income and can't get anything back.

-- Russ Fox

So Joe Hachem had lost 2 200 000$ from his 7 500 000$ 3 years ago !??!

That would put me life tilt. & on top of that; I donot know if they tax gambling in Australia, but he might be tax on his remaining 5 000 000$ in Australia, because Australia isn't touching a single dollar from the 2 200 000$ he allready paid.

-jpp

You dont get taxed in australia if your a recreational player, so he didnt get taxed on that but know he will. His wife said in a interview he was a pro and then joe said um no im not no im not so got away with it that time

The Australian Tax Office attempted to classify Joe Hachem as a professional; he fought the case and won. I wrote about that on my tax blog back in 2005. Do note that professional gamblers in Australia are supposed to pay income tax on their gambling winnings.

-- Russ Fox