Canadian trying to get tax witheld back

[davidross]

I just won a nice prize at a Casino in Niagara Falls NY and they witheld 9K from my prize. Does anyone know what steps I need to go through to claim the money back? I know there are services out there but I hate to give someone 30% just to file some forms for me.

[Russ Fox]

If the prize was won in 2006, sit back and relax. You're out of luck until January 2007 when you can file Form 1040-NR with the IRS for 2006. You'll be able to get back your gambling losses, up to the amount of your winnings. I wrote an article about this available at http://www.bigpoker.ca/tax_article.cfm

-- Russ Fox, EA

[davidross]

Thanks Russ,

In your article you talk about a form W-2G. I received a 1042-S with my payout. Is this the same form or can it be used the same way? Do you know if the entire amount deducted is refundable or just part of it?

[Russ Fox]

Since that article was written, the IRS has changed the procedures and Form 1042 is used.

You can get back some to all of your taxes depending on your gambling losses in the US. You will also have to declare any additional gambling winnings in the US (even if taxes are not withheld) on the 1040-NR. You must have back-up documentation for your winnings and losses (e.g. logbook of results).

-- Russ Fox, EA