Quote:
Originally Posted by DoGGz
Canada doesn't have proper gambling tax treaties so he gets taxed 30% on his winnings - like every normal American.
The bolded isn't correct. The U.S. does not have a flat 30% (or any other amount) tax on gambling winnings. Gambling winnings just get included on your tax return as ordinary income and there is an opportunity to deduct losing sessions as follows. This works as follows for non-professionals:
Net winning sessions are summed and reported on the 1040 as Other Income. Net losing sessions can be summed and taken as itemized deductions on Schedule A if you choose to itemize deductions rather than take the standard deduction.
And withholding is not tax owed if you are thinking that.