WSOP / WPT / EPT DiscussionThis section is for discussing major online poker tournaments such as the WSOP, EPT, WPT, WSOPE, LAPT, APPT and any others you can think of. Planning to go or looking for satellites online of offline? Discuss here.
From the IRS' perspective the $46K you won is income earned in the U.S.. They withheld $13.5K as tax on that income. The onus is now on you to file a U.S. income tax return if you want to try to recover some (or all) of the tax they withheld. As in most other countries, you can offset your income with certain allowable deductions. In your case the only deductions you'll probably be able to make would be gambling losses and, possibly, some expenses related to your gambling winnings (travel, accommodations, etc.). If you can show gambling losses and expenses equal to or greater than your gambling winnings (and that technically includes all gambling winnings you had in the U.S., not just those for which tax was withheld) than you will get all of the withholding taxes back. If your deductions are less than your gambling income, than you'll only get back some, not all, of the withholding tax.
You can use one of the Canadian services that get withholding taxes back for Canadians but they will basically be doing what I've outlined above (been there, done that and made sure I got copies of all the U.S. tax filings made on my behalf so I know what they do). In reality there's no magic solution - you need to show losses/deductions to offset income in order to claim a tax refund.
My main issue is with lines 69 and 70 of the 1040NR. It seems to indicate that I need to pay money since my total payments are < my income. Im just having issues filling out the 1040NR. Perhaps this is something I should get an accountant to do as long as they dont charge too much
Last edited by NickdaNutz; Jul 04,2009 at 11:53 PM.
Reason: I cant read obv
Having just spent the better part of an hour on the phone with an IRS agent (who was easily the happiest guy I have ever come across) there are a few easier and simplier steps for those with small amounts. So PM me but I will probably change the above later next week as I am swamped at the minute.
Hi do you have a link to the Application for IRS Individual Taxpayer Identification Number or ITIN that i have to fill out along with the W-7 Form? its my first time filing for refunds. i see the link for the w-7.
The way I'm reading this from the WSOP FAQ is if you have your ITIN already they won't withold the tax...
What must I provide to collect Tournament Winnings?
Winners must show their current valid picture identification (driver’s license, state identification card, or military
identification card) acceptable to Caesars in order to collect prizes. If a participant is not a U.S. citizen, a
current passport, consular identification or alien registration card is required.
• Foreign Residents of U.S. Tax Treaty Countries: Must provide an Individual Tax Identification Number.
• Foreign Residents of Treaty Countries, not providing an Individual Tax Identification Number, will be
subject to 30% tax withholding.
^^^this
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I don't think Canada is considered a treaty country for gambling income. UK is a treaty country, so the British WSOP bracelet winners could get assistance in obtaining an ITIN and have no tax withholding. I think any Canadian with over $5K in net winnings had the 30% witholding. If any Canadian with a ITIN is able to avoid the withholding, please post.
Quote:
Originally Posted by literation
• Foreign Residents of U.S. Tax Treaty Countries: Must provide an Individual Tax Identification Number.
• Foreign Residents of Treaty Countries, not providing an Individual Tax Identification Number, will be
subject to 30% tax withholding.
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Location: Milton, poker capital of the world.. after Wloo that is.
Posts: 8,578
Quote:
Originally Posted by Anton81
if i dont have my ITIN ready at cashout, can you apply for one after the tournament to try get some winnings back?
Yes of course you can. However for the casual player you may be very disappointed getting much back. It will be very interesting to see how it works out for Kirk "Pudge" Caldwell...
Location: Milton, poker capital of the world.. after Wloo that is.
Posts: 8,578
Quote:
Originally Posted by pokerJAH
Should I renew my British passport to avoid future withholding problems
I think it's country of residence that determines taxation rules... Like you i could have a British passport as I was born there, as was my father but it wouldn't really matter. I think I'll keep my Canadian one.
Yes of course you can. However for the casual player you may be very disappointed getting much back. It will be very interesting to see how it works out for Kirk "Pudge" Caldwell...
We have been discussing this and I think I have found a viable option to recover a large percentage of it, if not all. It involves the IRS "group win" loophole.
Location: Milton, poker capital of the world.. after Wloo that is.
Posts: 8,578
Quote:
Originally Posted by blackmagicz
We have been discussing this and I think I have found a viable option to recover a large percentage of it, if not all. It involves the IRS "group win" loophole.
Keep us updated Ted as this could be very valuable info.. Wonder what sort of advice/help Kirk is getting?
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