US Gambling Return FAQs For Canadians

The Gambling Return refers to the Federal US Tax form 1040NR, an avenue Canadian citizens can explore as part of the US and Canada tax treaty.

Essentially, it grants citizens the legal right to reduce their winnings by any losses they have incurred. That means any losses experienced by the player across any event can be deducted from the 30% tax on winnings.

It offers a route of additional value for the player to pursue and shifts the taxation responsibility away from the player and back on the government.

If you are a foreign citizen in the USA and you like a flutter, this article is for you.

There are several things you can do to ensure your 1040NR Gambling Return is as smooth and hassle-free as possible.

Here is a basic checklist to ensure your claim stays on track:

• Keep records: When you submit your 1040NR Gambling Return, you will be asked to provide evidence of your losses. Be that a losing bet slip, lottery ticket, or bingo card. It all counts.
• Dates and places: Include the date and location of each event or occasion on which you lost the money. The devil is in the detail as far as the IRS is concerned.
• Include witnesses: Make sure any friends or family present can attest to your presence.

Oftentimes, it can take up to 60 minutes to complete the 1040NR Gambling Return, but a lot of it depends.

For example, if you are a fairweather bettor with a keen eye for detail and an understanding of the process, the form could be submitted in minutes.

However, if you like to flutter frequently, then the complexity of your gambling income and expenses could increase the length of time.

The most crucial facet of filing the form is accuracy, so make sure any information is correct. Take your time.

There is no strict timeframe for the process, but estimates range from 2-3 months to up to six months.

A new process implemented recently has elongated the waiting period. Ensure you stay on top of your correspondence - a missed email, letter, or phone call could delay your application and subsequent repayment by weeks or months.

The date you file the return can also have an impact - the closer to the April tax deadline, the busier the IRS will be.

The deadline for filing the 1040NR Gambling Return form is generally the same as the deadline for filing your federal income tax return- April 15 of each year. However, if this date falls on a weekend or holiday, the deadline may be extended to the next business day.

There are other deadlines to consider, too, though.

For example, gambling losses from the last three years can be set against winnings. Before submitting your final documents - go over the bank statements and comb through them to find a forgotten flutter. For instance, winnings from 2016 may be filed until April 15, 2020.

Winnings from 2017 must be filed by April 15, 2021 and on it goes.

The gambling tax does not apply to winnings on the following games: Blackjack, Baccarat, Craps, Roulette, or Big 6 Wheel.

That's because the US government does not apply the tax to returns on any of the above games. Let's face facts - it would be difficult for an IRS employee to stand at a table with a calculator and cost all of the money that changes hands.

There are also no bet slips or wager slips on the live casino table, so it would be nigh-on impossible to prove losses.

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