What Is The Gambling Winnings Tax

So, you are in a Las Vegas casino and have won a good deal of money playing poker or at the slots or anywhere else. This is good for you, but when you get the check from the casino, it will take the money that is due in taxes to the IRS for income right off the top. You may not have to pay the gambling winnings tax, however, if you are not obligated to file income tax in the US. The casino will take the money as a matter of due course to send to the IRS as this is the law in the United States. You can recover gambling taxes if you do not have to pay income tax when you file the right forms with the internal revenue service.

Do not be intimidated by the internal revenue service. The IRS is the tax collecting entity in the United States, but they do not hold taxes for those who are not obligated to pay them as is the case with the gambling winnings tax that some people are not obligated to pay. The tax is withheld from the casinos because the majority of those who win at these casinos are obligated to pay income tax on their winnings. Winnings at a casino in the US is seen as income for those who are paying income tax in this country. If you are from another country, however, you may not have to pay these taxes and can recover gambling taxes by filing with the IRS.

Americans are used to filing with the IRS, they have to do this every year. They have to state their income, provide the correct forms that states their income such as a W-2 form or a 1099. The 1099 is the form that is given to those who receive income where no taxes have been taken out. However, only those who work in the United States and are obligated to pay taxes for their income are required to do this. Those who may have visited the United States and have won money in the casinos are not usually under this sort of obligation, but will get the money taken from their winnings anyway. It is not up to the casinos to determine who has to pay and who does not, they take the money off of the winnings as a matter of due course. Those who want to receive the money back must then file the correct forms and provide the correct documentation to the IRS so that they can recoup this money.

Because the internet has made it possible to learn about different tax laws in different countries as well as find recourse in getting these taxes back, people from Canada and other countries who won money in the casinos can now get back some of their money that they put forth in taxes. They just have to get the forms from the internet site and set forth in filing them with the Internal Revenue Service. This is not difficult to do, although you are going to want to complete the forms correctly. You can learn how to do this and get the help that you need when you go to the right site online in which to do so.

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