Who Is Eligible For Non-Resident Withholding Tax

Non-Resident Withholding Tax Eligibility

If you are a tourist to the US and your citizenship is not in the US, you could be eligible for non-resident withholding tax. This poses a concern for tourists, especially those who live in Canada, Mexico, Japan, South-East Asia, and Brazil; as they make up the majority of tourists to the US. Although members of the UK are also frequent visitors to the US, they are exempt from non-resident withholding tax. Because non-resident withholding tax impacts so many countries, we have set up offices around the world to support those subject to non-resident withholding tax.
As a non-US resident, you will be charged this non-resident withholding tax when you participate in eligible gaming and casino activities.

Non-Resident Withholding Tax – Taxable Games

While some games are not eligible for a non-resident withholding tax refund, we can help recover at least the majority of taxes for games in: casinos or slot machines, the lottery, any gaming tournaments including blackjack and poker, keno, game show winnings, and any taxable gambling winnings from dog or horse wagering.

How Taxable Games in the US are calculated

Slot Machine Winnings Tax:
Slot machines are taxable games if winnings reach or exceed $1,200. This tax will be withheld when you cash in your chips.
Poker Winnings Tax:
Winnings are reduced by the buy-in or wager and taxed at $5,000 or more. If you are playing a tournament in a US Indian Tribal Casino, it’s possible that earnings over $0 will be taxed.
Lottery Winnings Tax:
Winnings must be 300 times the original wager, with taxes, once the earnings reach at least $600.00
Horse Racing Winnings Tax:
Same principles as lottery winnings, with taxes starting on winnings of a minimum of $600.00 and 300 times the original wager.

Other Taxable Games:

  • Other wagering/betting
  • Keno
  • Game Shows

Un-Taxable Games in U.S. Casino and Gambling Establishments

In contrast to the games listed above, the following are examples of un-taxable games in the US:
  • Baccarat
  • Blackjack (unless it’s a tournament)
  • Craps
  • Roulette

Who is eligible for a Non-Resident Withholding Tax Refund?

Most non-US residents are entitled to a withholding tax refund. This is dependent on what type of tax agreement has been made between the US government and the non-US government in question. Canada and the US have formed a tax treaty which entitles Canadians to a refund, sometimes as much as the total tax.

RMS is ready to handle the complexities of non-resident withholding tax when submitting your claim. We have assembled a team of US-Canada Tax Accountants, headed by a Canadian Chartered Accountant, who thoroughly understand the international gambling laws and have helped thousands of Canadians and other non-U.S. citizens recover taxes from their gambling winnings. Contact one of the following offices set up to service your location:

The next time you visit the U.S. to enjoy some responsible gambling and come out a winner, trust RMS – Canada’s top choice for non-resident withholding tax refunds, to ensure you get all the money you’ve earned.

Apply to RMS Now

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