Quote:
Originally Posted by grando1.0
um canadian cause you get the money back?
People keep saying that. But far as I can tell it's greatly misleading. I haven't been able to find anything that says Canadians are supposed to get their withholdings back. Quite the opposite, actually.
Canadians face immediate withholding from their tournament winnings >$5000. They can file a 1040NR with the IRS after the end of the year if they like. But all the 1040NR does is let you offset wins by losses. So if you have $15K of wins and $10K of losses, the IRS will give you back some of your withholdings. But that's true of US players, too, if you itemize your tax return or file as a professional gambler.
So yes, if you want to lie and say you lost $15K while showing a $15K win, nothing stops you. Or if you actually lost money gambling in the US over the course of the year, you can file honestly. But far as I know, if you won $15K and have no offsetting loses, you owe the IRS taxes on the $15K.
Or is there something else available to Canadians I'm unaware of?