Casino Reviews

Filing Income Tax Forms for Slot Machine Jackpot Winnings

Slot Machine Jackpot WinningsCanadians wining a jackpot in Canada do not have to pay tax on those winnings. However Slot Machine Jackpot Winnings over $1200 in the US, taxes are due and usually collected on the spot by the casino officials. The casino will prepare the appropriate tax slip for you to use in filing your income taxes. If you happen to be a Canadian, they will prepare a 1042-S foreign persons US source income subject to with holding form and deduct 30% of your winnings right on the spot! This comes as a surprise to many people and they are left wondering how or if they will get their money back. If you won a jackpot last year it is time to file your income tax claim and get some or maybe all of that money back that you won in the casino.

Our last post discussed Casino Slot Machine Win Loss Statements, why you need them and how to get them. Once you have them you can begin to get all of the tax forms and think about filing your tax forms. This particular post is focused on what Canadians need to do if you win a jackpot larger than $1200!

Slot Machine Jackpot Winnings – A bit Daunting at First

The list we have assembled below may seem a bit daunting at first, however if you follow the steps outlined below and you read all of the documentation, you should not have any problems. Remember that this approach is for non-residents, Canadians in particular. It is also a simplified approach and for gambling winnings only. If you have other sources of income then you may need a professional to assist you in completing the tax forms.

Step by Step Approach to Filing Income Tax Forms for Slot Machine Jackpot Winnings

Here is a short step by step approach, which we will expand on later in the post:

  • Request win / loss statements from all casinos for the tax year in question
  • Assemble all 1042-s Forms
  • Download W-7 form and instructions from IRS website
  • Read instructions for W-7
  • Decide if you need to apply for an IRS ITIN (Individual Taxpayer Identification Number)
  • If so assemble approved identification papers and fill out form
  • Download 1040NR US Nonresident Alien Income Tax Return & instructions
  • Read instructions for 1040 NR
  • Complete 1040NR and attached 1042-S documents and win / loss documents
  • Make a copy of everything for your records
  • Send the following into the IRS
    • Completed W-7
    • Identification documentation
    • Completed 1040NR
    • Copies of Win / Loss statements
    • All 1042-S forms

OnceĀ  you have done all of this you are ready to send your tax claim into the IRS and it will probably take a month or two before you hear back from them , hopefully with your tax rebate.

Documentation Certifying Your Identity

In our case we needed to have a passport copy made and certified that it was a true copy. The only people who can do this as far as the US government is concerned is the Canadian passport office. Turns out that the passport office does this for free and if you drop your request off and pick it up they can complete the request within 3 or 4 business days. Make sure you take your completed W-7 in with you to show that why you need the copy of your passport certified.

Of course you can mail it in as well, however it will take longer to process and return to you. When you send in the request, you will also need a simple letter stating the following:

  • Date
  • Subject
  • To Whom it may concern
  • Statement as to what you need and why
  • Printed name and address
  • Signature

That is what we have learned so far about Filing Income Tax Forms for Slot Machine Jackpot Winnings. We are currently waiting for a response and will add a new post when we get our money back. If you decide to go to a professional be prepared to hand over a significant chunk of your tax money that is returned. They do not work for free or cheaply.

We would like to hear from other folks that have gone through this process and anything they have learned about getting their money back. Well written comments that are helpful to our readers with links will be approved. We are looking for comments that are helpful and not just links to another site.

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