Serbinski Accounting Firms

Unfortunately, it looks like any deductions, including personal exemption amount, apply only to business income and NOT to other income like gambling winnings. On the 1040-NR, business income and relevant deductions are totalled first and then other income is added on.

I feel like the hassles ...

I did not find any reference to $3700 exemption anywhere related to casino winnings on IRS site.

All I could find is that slot machine wins over $1200 were subject to 30% withholding. The amount of tax taken based on 30% of win could be reduced for Canadians who have proof of gambling losses ...

Background info - Canadian living in Canada. Visited US and won $3200 in 2011 playing slots in casino in Wisconsin. Casino did NOT withold any tax after seeing my Canadian ID saying it was not required under tax treaty. In May 2012, I received a 1042-S showing $3200 gross income, blank for all ...