A non-resident Canadian citizen visiting a las vegas casino wins $1,000. The Casino withholds $300 tax. What does the Canadian need to get the withholding refunded?

asked 25 Nov '09, 16:44

Bill%20Pate's gravatar image

Bill Pate
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edited 26 Nov '09, 21:09

TaxQueries's gravatar image

TaxQueries ♦♦

I do not have experience with Canadian taxes, but it seems to me with all the treaies in place, that he might be able to claim a credit on his Canadian return for foreign income taxes paid , much the same as we can.

This is definitely more in the form of a question looking for more ideas than in an answer.


answered 26 Nov '09, 13:51

AJ's gravatar image

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Yes, AJ, you are correct, as well as Sandy, since the Canadian citizen would file Form 1040NR in order to determine the ultimate tax liability for which to claim credit against the $1,000 on the Canadian tax filing.

(26 Nov '09, 14:25) Brent Berkman

For sure AJ, but as well he can take the gambling losses to offset the winnings on the 1040NR and then get a refund as well as take a FTC on his CDN return

(27 Nov '09, 15:45) SandySea

The 30% w/h tax is standard for a non resident. He would have to file a 1040NR to claim the refund (if any) for the taxes withheld at source.


answered 25 Nov '09, 18:29

SandySea's gravatar image

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He must file a Form 1040NR on which he reports the income, calculates his total U.S. tax liability for the year, which may or may not be $0, reports the tax withheld, and claims a refund of the difference between the tax witheld and the actual tax liability.


answered 27 Nov '09, 23:14

stephenweinstein's gravatar image

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From the other board: In dealing with non-resident alien tax issues, the general answers frequently do not apply - the tax treaty has to be checked. I have not checked the tax treaty with Canada for gambling income and losses, but if the treaty has different provisions than the general rule, the treaty applies. So that should be the starting point for any research.


answered 28 Nov '09, 17:11

Pat%20Haggerty's gravatar image

Pat Haggerty
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I agree with AJ. You need to check if there is any tax treaty with Canada. If not, just file a 1040-NR.


answered 29 Nov '09, 01:05

Reynol%20Cobreiro%20ATP%201's gravatar image

Reynol Cobre...
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I am a Canadian Tax Consultant. The answer given by Stephen weinstein is the correct one. The Tax treaty is irrelevant. The person must file a 1040 (and they must get an identifier number). The rate withheld is 30% and provided there is no other U.S, income to report, they will get the tax back. There are a couple of firms in Canada who do this full time. If you are interested I can give you their names and links.


answered 03 Dec '09, 01:13

MARVIN%20ZEAVIN's gravatar image

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AJ also had a correct answer especially when considered with my comment!

(03 Dec '09, 02:55) Brent Berkman
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Asked: 25 Nov '09, 16:44

Seen: 1,345 times

Last updated: 03 Dec '09, 01:13