My daughter is both US citizen and a Canadian citizen. She is a minor and has no income. She is going to appear on a game show in the US and the show wants to know if they should use our Canadian SINs or our US SSNs. The winnings will be in the minor's name, but I will receive a small per diem for expenses. She might win only $1,000 but she might win $15,000 or more. The show staff mentioned that California will withhold state taxes, which seems odd since we are not California residents.
We live in Canada and we file both US and Canadian tax forms, paying taxes in Canada and exempting all income in the US.
Does anyone have advice on the best way to handle this? Is there a minimum income for the minor below which she doesn't need to file tax forms (unless we need to recover withholding)?
Canada does not tax lottery/gambling winnings. Does that include game shows? I couldn't find anything on the CRA site about game shows.
Thank you for any information you can provide.
Game show winnings
Moderator: Mark T Serbinski CA CPA
Dependants can have about $1300 of unearned income without filing, otherwise either they file or you add it to your income.
However "winnings" are earned income, which are taxable in US and California (because that is the source of the income).
The winning will not be reportable in canada.
So, they should use her SSN (and yours), since this is the primary place where she and you will be taxed on these monies.
However "winnings" are earned income, which are taxable in US and California (because that is the source of the income).
The winning will not be reportable in canada.
So, they should use her SSN (and yours), since this is the primary place where she and you will be taxed on these monies.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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gameshowmom
- Posts: 3
- Joined: Tue Jan 15, 2013 10:30 am
This will depend on her other income, and how much she wins.
The point is that neither of you is Cdn in terms of US taxation, so make sure that neither is treated like a non-resident, as this will generally result in higher not lower withholding.
The point is that neither of you is Cdn in terms of US taxation, so make sure that neither is treated like a non-resident, as this will generally result in higher not lower withholding.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
-
gameshowmom
- Posts: 3
- Joined: Tue Jan 15, 2013 10:30 am
Update
An update, in case anyone else is searching for this information:
My daughter's check arrived and no taxes were withheld, not even California game show taxes. I assume that the size of the check put it below some threshold, perhaps in combination with the fact that she is a minor. She's very happy not to have lost some of her winnings! And I'm happy to not to have to file a tax return for her next spring to try to get it back!
My daughter's check arrived and no taxes were withheld, not even California game show taxes. I assume that the size of the check put it below some threshold, perhaps in combination with the fact that she is a minor. She's very happy not to have lost some of her winnings! And I'm happy to not to have to file a tax return for her next spring to try to get it back!