Canadian gambling winnings in the US

[OttawaSenators]

My buddy is visiting me from Canada. He won in a poker tournament and since he did not have a SSN, they withheld 30% of the prize money. What should he do when he goes back to Canada? How can he get that money back?

[JGCA]

short answer is he files a 1040NR to report the winnings but the only help he would get is if he was a professional gambler and took very good records of his losses top offset them against these winnings, in absence of this NO he can not get back the tax. YOu do not get to claim any personal exemptions either so its no use.

[OttawaSenators]

He is a professional poker player and he keeps track of his tourney buy-in's. So I guess he can offset it with losses he has had in the US.

How come we can offset it with losses even as a recreational gambler but not him? I have done it thru itemized deductions when I got a W2G.

[nelsona]

JGCA just told you, he CAN write off his losses, because he is a pro that tracks his winnings and losses.
Its the recreational guy who doesn't keep track that pays the full 30%.

[OttawaSenators]

Please correct me if I am wrong: so a non-resident cannot claim gambling losses on line 28 of schedule A of 1040NR unless he/she is a professional gambler (and that would be line 21 of sch A).

[mtnman]

On schedule NEC it says that losses are allowed for Canadians.

[OttawaSenators]

Thank you so much mtnman! Looks like a lot of people on this forum did not have the 100% correct answer. You don't really need to be a pro gambler.

For everyone's reference and for the people who will search the forum for this topic in the future, here it is straight from IRS' mouth:


"'Lines 10a Through 10c—Gambling Winnings-Residents of Canada

If you are a resident of Canada who is not engaged in the trade or business of gambling, enter all gambling winnings on line 10a. Include proceeds from lotteries and raffles. Do not include winnings from blackjack, baccarat, craps, roulette, or big-6 wheel. You can deduct your U.S. source gambling losses to the extent of your U.S. source gambling winnings. Enter your gambling losses on line 10b. Enter your net gambling income on line 10c, column (c). If line 10b is more than line 10a, enter -0- on line 10c. A net loss from gambling activities is not deductible. "

http://www.irs.gov/instructions/i1040nr ... ml#d0e8848

[nelsona]

I don't know what you found hard to understand.

Cdn Gamblers -- any CDn gamblers -- who track their winnings and losses can file a refund claim using 1040NR. Nothing new, nothing different.

It is simply that most recreational gamblers do not track their expenses -- or at least not as rigorously as the IRS requires.

[OttawaSenators]

[quote="nelsona"]I don't know what you found hard to understand.

Cdn Gamblers -- any CDn gamblers -- who track their winnings and losses can file a refund claim using 1040NR. Nothing new, nothing different.

It is simply that most recreational gamblers do not track their expenses -- or at least not as rigorously as the IRS requires.[/quote]

Look at what JGCA said earlier:
"but the only help he would get is if he was a professional gambler and took very good records of his losses..."

This to me means he must be a pro gambler. I think IRS' own language is much simpler and more straightforward to understand.

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[HeidyGlover]

That's a tough situation for your friend, but luckily there is a way for him to get that money back.

[Bazillion]

Hey there! I'm not an expert, but I've heard that if your buddy is from Canada and had taxes withheld on his poker tournament winnings in the US, he might be able to claim a refund. It's important for him to consult a tax professional or do some research on how to go about it. They'll have the knowledge and expertise to guide him through the process and help him get his money back. Good luck to your buddy, and I hope everything works out for him! By the way, if you're into casino games and gambling, you can find some useful information at https://www.annecocukbeslenmesi.org/.

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