What Does Happen To Canadian Gambling Winnings?

By Author: Angelo Everton
Total Articles: 320
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The current tax laws in the United States dictate any monies won from gambling endeavors is taxable as income. This means that regardless of which country you are native to, if you win money from a casino on US soil, you will be assessed tax on that financial gain in the amount of 30%. This is also true for any Canadian gambling winnings. Fortunately for some International residents, Canadians included, there are tax treaties between the United States and several foreign countries which provides residents of those countries the opportunity to file a claim to have that tax assessment returned to them. In order to file for a gambling tax refund Canada has agreed to such a tax treaty for the benefit of its citizens.

Not all monies won at a casino will be assessed this 30% income tax. Canadian gambling winnings that are subject to this tax rate are generally those that are in an amount higher than the machine being played has the ability to payout. For instance if you win $100.00 on a slot machine, chances are you won’t even be approached by a casino representative, the machine will payout the money won and you can ...
... receive it and do whatever you want with it. In order to qualify for a gambling tax refund Canada’s citizens must win an amount worthy of being assessed a tax.

Canadian gambling winnings that are earned on one of the many table games may also be exempt from the 30% tax rate depending on how much money is won. Generally speaking money won at table games is paid out in the form of casino chips of various monetary values. These chips are turned in at the cashier’s cage for actual paper currency. If the amount is large enough a tax will be assessed at the time of currency conversion, if not then a gambling tax refund Canada process will not be necessary.

If you are a resident of Canada and you are considering a vacation or visit to one of the many casinos in the United States then you may want to prepare yourself for the possibility that your Canadian gambling winnings might be taxed. If this happens there are plenty of professional tax preparers that offer their services to assist in the process of filing for a gambling tax refund Canada claim form on your behalf. These companies can be found on the Internet by conducting a search for them. Not every tax preparing professional gets involved with this process, so finding one that does is paramount to a successful recovery of the monies taxed.
Canadian gambling winnings are treated no different than any other monies won at a casino on US soil; they are taxed at 30% just like everyone else. If you need to file for a gambling tax refund Canada don’t panic, just do the research or hire professional help to solve the issue for you.