Yes, they can. American casinos withhold 30% of your winnings but Canadian residents can file for a potential gambling tax refund.

Yes! We assist clients across Canada in recovering their US Gambling Tax withholdings. Please send us an e-mail at info@cisincometax.ca or call us at 905-356-8106 and we can process your documents remotely. We collect payment through debit card, credit card, or e-transfer. Once your tax return is complete, we will mail you a physical copy.

To file a US Non-Resident Return (1040NR), you’ll need:

• Your US gambling tax slips (Form 1042-S)
• Individual Taxpayer Identification Number (ITIN) – please see our section below if you need to apply or re-apply for an ITIN
• A certified copy of your passport (if applying for an ITIN)
• Your Win/Loss Statement

To apply for a new ITIN or to renew an existing ITIN, we require a Certified True Copy of your Passport. The IRS requires that this must be obtained directly from a Passport office or the Embassy that issued your Passport (for non-Canadian citizens). Notarized copies from lawyers or notaries will be rejected. PLEASE SEE UPDATE BELOW REGARDING OBTAINING A CERTIFIED COPY OF YOUR PASSPORT.

For more information on how to obtain a Certified True Copy of your Canadian Passport, please visit Travel & Tourism Canada.

*Please note that your Passport must be valid for a minimum of six months from the date that we file the US Tax Return. Please verify your Passport expiration date before requesting a Certified True Copy of your Passport.

IMPORTANT NOTICE: If you do not have an ITIN, or if your ITIN has expired, you will need to verify (or re-verify) your identity with the IRS. Normally, this can be done by obtaining a certified copy of your passport from the passport office. Due to recent changes by the passport office though, the IRS is no longer accepting these certified copies. We are working with local MPs and the passport office directly to fix these issues but for the time being, the only options to verify your identity include:

• Going to an IRS office in-person with your passport and a copy of your W-7 Application (which we can prepare on your behalf)
• Mailing your passport and W-7 in to IRS directly; or
• Finding an IRS certifying agent in Canada or the US who can verify your identity (fees apply)

Please call our office and we would be happy to provide additional information or advise you of next steps.

If your ITIN has not been used on a tax return in the past 3 tax years, your ITIN is expired. Therefore, if you did not file a 2020, 2021, or 2022 US tax return, your ITIN must be renewed.

Additionally, ITIN’s with middle digits between 70-88, or 90-99 (if issued before 2013) have expired and must also be renewed.

If you are unsure whether your ITIN is still active, please contact the IRS directly. The direct phone number from Canada is 267-941-1000.

If you don’t have an ITIN, we will apply for a number for you and submit it with your return. The ITIN application must be submitted at the same time as filing the tax return.

IRS allows taxpayers to file retroactively for up to three previous years (determined based on the original due date) to claim a refund of their gambling tax withholdings.

Therefore, if the 1042-S slip is from 2020, the due date to file that year’s tax return would have been April 15, 2021, which means the latest that someone could claim their refund is April 15, 2024.

No. A US tax return must be filed for each individual year. The tax return follows a calendar year from January 1 to December 31 so only wins or losses during that timeframe can be combined. Any wins or losses from previous/subsequent years must be reported within that respective calendar year. This means that excess losses in one calendar year cannot be used in a previous/subsequent calendar year to offset any excess wins.

Under normal circumstances, it takes approximately 7-8 weeks. Unfortunately, the IRS estimates that the current processing time is a minimum of 6 months due to new examination processes that were implemented. Individuals can check the status of their tax refund by visiting the IRS website.

The refund will be mailed directly to you on a treasury cheque from the IRS (in USD).

We’d be more than happy to assist in responding to any correspondence you receive from the IRS.

Assistance with general correspondence from the IRS (i.e. letters requesting clarification about 1042-S slips) is included in our fee for preparing your US return.

Assistance in responding to formal IRS audit inquiries it is not included in our fee for preparing your US return. We’d be more than happy to assist with responding to this IRS audit inquiry for an additional fee. Due to the varying complexity and scope covered by IRS audits, our fee for assisting with IRS audits is based on the time we spend assisting you.

If your 1042-S slip does not have complete or accurate information (i.e. your ITIN is not listed on the slip, or your name as shown on the 1042-S slip does not match the name attached to your ITIN), the IRS may hold or reduce your refund accordingly. To resolve this, you need to contact the issuing casino/agency directly and have them update/amend the 1042-S slip to show this accurate information.

Once you receive this updated 1042-S slip, we would be more than happy to submit it for you to the IRS.

Please note, we cannot amend or alter 1042-S slips, this must be done directly by the issuing casino/agency. The casino/agency will not speak to us regarding amending slips either, this must be done directly by the taxpayer.

Direct deposit is only available if you have a US bank account.