When a casino is not presented with a valid tax identification number from a foreign person, they are required to withhold 30% tax withholding on gambling winnings. The winner will be provided with a 1042-S (or W-2G) showing the gross income and tax withheld.
To claim back the tax the individual will need to file a 1040-NR US tax return (once the tax year has ended) and in doing so, apply for an individual tax identification number (ITIN) using form W-7. Copies of the 1042-S (or W-2G) will also need to be attached as evidence of withholding.
Where a valid tax treaty exists - up to all of the tax withheld can be claimed back where the income is not effectively connected with US trade or business. An additional form 8833 will need to be attached to the tax return to claim a treaty benefit. The following countries are exempt from US income tax:
US Tax treaty countries include
- Austria
- Belgium
- Bulgaria
- Czech Republic
- Denmark
- Finland
- France
- Germany
- Hungary
- Iceland
- Ireland
- Italy
- Japan
- Latvia
- Lithuania
- Luxembourg
- Netherlands
- Russia
- Slovak Republic
- Slovenia
- South Africa
- Spain
- Sweden
- Tunisia
- Turkey
- Ukraine
- United Kingdom
Normally for the countries above you need to just provide a W-8BEN along with your individual tax identification number (ITIN).
If you require a 1040-NR US tax return prepared to claim back US withholding tax on gambling winnings, we can asssist. Please call us on 077255 87696 or email info@justbreve.com for more information.
Tax refunds can take anywhere from 4 to 6 months based on IRS processing times.
A Certified Acceptance Agent (CAA) can assist you in obtaining the correct TIN.
Just Breve are part of the ITIN Acceptance Agent Program. As a Certifying Acceptance Agent (CAA), we are authorised by the Internal Revenue Service (IRS) to assist alien individuals and other foreign persons with obtaining ITINs from the IRS by validating the person’s foreign status and identity.
We are based near London Heathrow and can assist individuals to obtain their ITIN number at their convenience. Are you flying in or out of Heathrow on business? We can meet you to verify all documentation near the Heathrow area or at a location that suits you.
We cover London and the surrounding areas, Heathrow and anywhere in the UK. Travel costs apply in certain cases outside of London.
Get in touch today:
e: info@justbreve.com
m: 077255 87696
CERTIFIED ACCEPTANCE AGENTS
In lieu of sending original documentation, taxpayers may be eligible to use an IRS authorized Certified Acceptance Agent (CAA).