Cant find through sticky.

Onlike Poker (Stars and Full Tilt) - income effecitvely connected with U.S Trade/Business or not(Schedule NEC)?

Please ask your question in a way that can be understood. I'd be glad to give you a reasonable answer.

I am a foreign student who started studying in the States in Aug 15 2011

I am told that I need to form 1040NR for my tax returns.I made less than 8k in winnings including rakeback (Aug 15-Dec 31 2010)

1.Is there any exemptions for my tax(small winnings and having been in the states for a few months in 2011)

2.to fill out for gambling winnings.do i

fill line 21(1040NR)-income connected with a U.S Trade or Business

or

fill line 11 (1040NR-but Schedule NEC) - income not conntected with a U.S Trade or Business

Isn't Pokerstars and Full Tilt located in Isle of Man and Ireland respectively? If so,
is it still connected to the States

I hope its understandable

You probably have some choices, but here is some information for you to use to make these choices:

The general rule for gambling income for non-resident aliens is:
http://www.irs.gov/publications/p519...link1000222305
Usually, non-resident aliens who are in the U.S. on a student visa are considered effectively connected to a business and therefore all income earned while studying in the U.S. would be reported on the Form 1040NR:
http://www.irs.gov/publications/p519...link1000222305
Your poker income may be treated in various ways, depending on your individual situation. You do have to count all your winning sessions as gambling income and all your losing sessions as gambling losses, as described in the US Taxes sticky in this forum.

I would next consider whether or not your gambling income is exempt from US income taxes based on tax treaties with your home country. From the US Taxes sticky:
You would report any gambling winnings that are exempt from US taxes due to a tax treaty on your Form 1040NR Schedule 0I, Line L and Form 1040NR Line 22.

If you are not taking the tax treaty exemption, then you have to decide if you will report your gambling winnings and losses as a pro player or an amateur. Use the same discussions on this for U.S. players as described in the US Taxes sticky to decide. Since you are a full-time student, you probably can choose which one you want to do. This is fortunate, as unlike a US citizen, a non-resident alien cannot take an itemized deduction for gambling losses.

If you decide to report as a pro player, use a Schedule C (from Form 1040) to net your wins and losses, and you can take normal business deductions related to this "business" as business expenses on that form.

If you decide to report as an amateur, report your gambing winnings on Line 11 of your Form 1040NR Schedule NEC (Line 10 if you are from Canada):
http://www.irs.gov/instructions/i104...2.html#d0e7584
With all that said, there is still the question of whether or not your online poker winnings are US-source income. Yes, Pokerstars and FTP are both foreign-based companies. However, you are playing from the U.S. and probably using the income for living expenses in the U.S. while a student. Although the sites are not located in the U.S., you are performing the gambling within the U.S. and receiving the income while in the U.S. I believe the IRS will view this as U.S.-source income, and probably as business-based income.

My recommendation is to file the 1040NR and report your income as business income using a Schedule C, unless you can claim exemption for the gambling income under a tax treaty. I also recommend that you consult an immigration law professional to determine if there are any issues involved which would put your visa status at risk.

Thanks again for your awesome work on all this PX!

thank you for the info PX.really appreciate it.

taxes done!

might be good to combine the US sticky forums with a tagged for non-resident

YW. Good idea.
YW. Do you want to add my post to the US Taxes sticky thread?

In my case I cashed in a tournament at the golden nugget and they refused to get me an ITIN and therefore they withheld a 30% (about 2500$)

I live in a tax-treaty country, so I should be able to get this money back.

So after reading the sticky and this thread, I have to file form 1040NR Schedule OI - Line L and the total income in line 22.

I still have some questions:

- Where in the form do I detail the amount withheld? Or is it enough to attach the 1042-S form?
- Being from a tax-treaty country, do I have to deduct the tournament entry fees where I didn't cash to proof I didn't make profit? Or do I just have right to get it back?
- I don't have an ITIN number, do I have to get it before I file the 1040NR? Or will they assign me an ITIN when they receive the 1040NR? If I have to get it before, what's the deadline to submit the 1040NR? I may not be on time for this
- Will I receive a check for the full amount withheld? If so I'll have to find out if my local bank will cash it or if I have to wait to my next trip to the US to cash it
- I saw that the form is sent by mail, so if it gets lost I can't know or have a proof that I submitted it... Sounds weird, here when we file taxes we go to a bank and they stamp a copy of the file so you can keep it

Thanks in advance

1. On your 1040NR, you will need to (a) attach the 1042-S, (b) note the clause of the Tax Treaty that gives you the right for a refund. You can obtain a refund as long as you file the return within three years of the due date (April 15, 2015).

2. The IRS will send you a check in US Dollars.

3. Anything mailed to a tax agency should be sent certified mail, return receipt requested (or the equivalent). Foreign postal services usually have an equivalent (registered mail).

4. You will need to attach a Form W-7 to your return along with appropriate documentation. See the instructions to the form for the required documents. The IRS does have individual working outside of the US in Beijing, Frankfurt, London, and Paris, and as described in this article an ITIN can be obtained at one of those embassies/consulates. If you are going to be in the US, you can also obtain an ITIN at an IRS office.

If you do send your paperwork by mail to the IRS, be aware that the ITIN unit is one of the slowest (if not the slowest) groups at the IRS, and it routinely takes many weeks for an ITIN to be processed.

-- Russ Fox

administrative bump to prevent archiving of thread, as this thread is linked to by the tax sticky

I am a UK player moving to Miami in September, going to play the live cash games there and was wondering if I have to pay tax on anything I win?

Iv played in a few countries with no problems including Australia, Italy Bahamas, France and the Uk.

Was wondering, if there was anyone in the same situation as me?

no tax, just like if i came from canada to play in the US, our countries dont pay tax on gambling.

they will take the money they would if you were from US, but you can file forms to regain all of it so you end up with 100% it just takes some months.

That is not true. The UK has a special tax treaty where if you provide them with a special number you should ask your account for that will make it so they do not withhold any money at all.

I need to find out that special number than

ty

Anyone got a link to an idots guide to getting said 'special number'.