The deal with the 30% withholding rate for int'l players...

[kerr]

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Mate, I am an Australian involved in hedge funds operating companies between USA and Australia. WE HAVE A dual tax treaty, EOS, if not E+Y, PWC and every law firm I deal with in NY, Perth and Sydney are crackers

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Fair enough, I don't doubt your expertise. But any chance you can put forward some proof? Are there other countries not listed in the IRS link I provided that may also have a tax treaty?

[gvegas]

I cashed for 35k at the Bellagio cup (5K buy-in)and they only taxed me 9K. So they taxed the net gain.

[teddyFBI]

When I file the 1040-NR with the IRS do I have to declare ALL my gambling winnings from this year, or ONLY those won in the USA? e.g. i spent 3 weeks down here this year for the WSOP...i only have to report my winnings from that time, right, and not the monies i won when I was in Canada the rest of the year...?

[Silent A]

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Mate, I am an Australian involved in hedge funds operating companies between USA and Australia. WE HAVE A dual tax treaty but the "gambling side" is not stipulated because for an amateur (as defined in Australia) there is no reporting requirements, EOS, if not E+Y, PWC and every law firm I deal with in NY, Perth and Sydney are crackers

We just file W8-BEn when we collect and the 30% does not apply. I will ask the Aussie non-pros if they in fact have been paying the 30% with-hold as per your IRS link. I think the answer is no but will find out.

The pros are subject to taX in Australia as per any profession.

Gl all

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That list was for countries that specifically have a gambling income tax treaty.

[teddyFBI]

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When I file the 1040-NR with the IRS do I have to declare ALL my gambling winnings from this year, or ONLY those won in the USA? e.g. i spent 3 weeks down here this year for the WSOP...i only have to report my winnings from that time, right, and not the monies i won when I was in Canada the rest of the year...?

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[1gigRAM]

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I will ask the Aussie non-pros if they in fact have been paying the 30% with-hold as per your IRS link. I think the answer is no but will find out.

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Did you find out about this?

[tuckercat]

as a canadian, they will chop you 30% off the top, but when you get back home, you need to go to your accountant or a place like http://www.ustaxrecovery.com/

they will normally get all of your winnings back minus their fee. when i first went through this process i got my money back in about 4 months. however once you have done this once and have a US tax i.d number, the process takes half the time. i've had 9 cashes in US tournies over two years, averaging 9k per cash, and i would say my average wait time to get my money back is 2 months. i don't really know how winning a large amount (150k +) affects the length of the process... but i've gotten back an aggregate total of 92% of what was witheld. as far as CND government is concerned, you don't pay anything tax on those winnings., even if you're a "pro". it's good to be canadian.

[seemorenuts]

tuckercat, by now you should be able to know the ropes enough to do this yourself without the aid of a fee charging site or service. Am I right?

Moreover, the 30% accrues nominally meaningful interest until paid (4-6% in the old days) and the earlier post by a Canadian seems wrong to me, you don't need gambling losses, and nothing is deducted from the 30% withheld.

For now you don't need to keep expenses and receipts since the Canadian government sees it as a windfall or some variant. Of course, it always helps to keep receipts, as governments change their minds at a moment's notice--and in fact I recall that the situation is very much up in the air, i.e. nebulous at the Supreme Court of Canada level...

BTW, I've noticed in more than one instance US tournaments paying Canadians their entire winnings in cash, 4 figures.

[tuckercat]

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tuckercat, by now you should be able to know the ropes enough to do this yourself without the aid of a fee charging site or service. Am I right?

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ya... i know my tax id, and how to do it all. it's just a matter of filling out a form and sending it to the right location. there's really nothing more to it beyond that. i don't think i would be too comfortable handling this on my own with any kind of a reasonable score (20k+). but for smaller scores, >20k it's a good way to save some loot.

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Moreover, the 30% accrues nominally meaningful interest until paid (4-6% in the old days) and the earlier post by a Canadian seems wrong to me, you don't need gambling losses, and nothing is deducted from the 30% withheld.

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correct. i think it's 4.5 points... i can check on that though.

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For now you don't need to keep expenses and receipts since the Canadian government sees it as a windfall or some variant. Of course, it always helps to keep receipts, as governments change their minds at a moment's notice--and in fact I recall that the situation is very much up in the air, i.e. nebulous at the Supreme Court of Canada level...

BTW, I've noticed in more than one instance US tournaments paying Canadians their entire winnings in cash, 4 figures.

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no receipts needed. any kind of gambling/lottery winnings are tax free. that is standard. as for debate, i don't believe much progress has been made on that. IMO i think canada is going to be a gambling/lottery winnings safe haven for good. as for payouts in cash... was this observed in indian casinos? i believe some stipulations exist in indian casinos where no tax is chopped if you're canadian.