Quote:
Originally Posted by madlex
I’m sure you’re aware of it, but since your thread title is kinda unclear: There is a tax treaty between the US and Canada.
Although there is a tax treaty, the US does not respect the "no tax on gambling winnings" section of the Canadian tax code. Unlike residents of some other countries that do not tax gambling winnings, for instance Great Britain, Canadian gamblers in the US are subject to the same withholding that US residents are.
Canadian gamblers will usually have great difficulty recovering any portion of what is withheld; even recovering legitimate expenses like tournament buy-ins or hotel and travel costs can be problematic.
In fact, Canadian gamblers who enjoy a big win might be better off declaring themselves to be Professional Gamblers (who are required to pay tax on winnings in Canada,) in hopes of using reciprocal tax agreements to pay taxes on their winnings in Canada instead of in the States, thus saving a few percentage points due to a lower top tax rate.
Last edited by 2pairsof2s; 05-24-2019 at 11:50 AM.