Can tourists claim taxes back on gambling winnings?
Can tourists claim taxes back on gambling winnings?
Published on April 28, 2025
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Can I claim taxes back on gambling winnings in the US?
It depends on who you are. If you’re a US citizen or a Green Card holder who recently won big in a casino, then you will need to report your gambling winnings on your US federal tax return, it’s part of your responsibility as a US national.
So, can you claim taxes back on gambling winnings? Yes, you can either recover the taxes withheld from you by the casino or offset the winnings with gambling losses (if you have) to reduce the amount of tax owed.
Can foreign nationals or tourists do the same thing?
Foreign nationals or tourists can also have the chance to claim taxes back on gambling winnings, only in a different way. But most importantly, not all tourists can claim back taxes on their gambling winnings.
How are prize winnings taxed in the US?
For US persons, the IRS taxes 24% of their gambling winnings, and casinos will usually issue Form W-2G to them and the IRS to report their winnings.
The tax rate for foreign tourists is 30% of their gambling winnings, and casinos will issue them a Form 1042-S instead, which will include their casino winnings and the amount of tax withheld.
How do I claim my US gambling tax back from the IRS?
There are two ways:
- Get a tax refund or;
- Offset the winnings with gambling losses
Getting a tax refund
If you find that too much tax was withheld because you had significant losses, or your total income ended up in a lower bracket, you can claim a refund when you file your US tax return. This is just like when too much tax is withheld from your paycheck.
Deducting gambling losses
If you incurred gambling losses, you can offset them up to the amount of your winnings. So, if you lost more than you won, you can’t deduct the excess losses. This can only be done if you itemize deductions on your tax return; if you take the standard deduction, you cannot deduct gambling losses at all.
How can foreign nationals or tourists claim taxes back on gambling winnings?
Tourists will need to file a non-resident alien tax return (NRA) reporting their gambling winnings in order to claim a tax refund for taxes withheld by the casino.
As stated before, only some tourists can claim their taxes back on gambling winnings. Their eligibility will depend on whether their home country has a valid tax treaty with the US.
Here is the list of eligible countries that can claim back taxes on their casino or gambling winnings:
United Kingdom |
Austria |
France |
Belgium |
Germany |
Czech Republic |
Japan |
Hungary |
Italy |
Ukraine |
Russia |
Iceland |
Spain |
Slovenia |
Turkey |
Slovak Republic |
Netherlands |
Bulgaria |
Sweden |
Lithuania |
Ireland |
Latvia |
Denmark |
Luxembourg |
Finland |
Tunisia |
South Africa |
Not all countries with a current tax treaty (e.g., Australia and New Zealand) can claim back taxes on gambling winnings because of the terms of their tax treaties.
Why use the IRS Streamlined Tax Amnesty Program?
It’s for American citizens that didn’t know they had to file US tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties.
Connect with over 10,000+ expats today!
Embarking on an international journey shouldn’t mean navigating the complex world of US taxation alone. If you’re living and working abroad, our friendly, supportive Expat Tax Online Help Facebook group is here to assist. We’ve designed a community that serves as a comprehensive guide and resource platform tailored for US expats.
How to file a non-resident alien tax return
Here are the steps to file a non-resident alien tax return and get a tax refund on gambling winnings:
- Gather your documents: This will include your valid passport or ID and Form 1042-S
- Obtain an Individual Taxpayer Identification Number (ITIN): This will serve as your tax identity in the US, it’s important that you acquire this or you cannot proceed in filing your tax return.
- Download and complete Form 1040NR: This is the official tax return form for non-resident aliens (tourists). You can find it at the IRS official site.
- Submit and claim a tax refund: When you mail your tax return, you’ll need to attach your application for an ITIN and Form 1042-S to claim a tax refund.
What is the purpose of an ITIN?
An Individual Taxpayer Identification Number (ITIN) is issued to individuals who will pay taxes in the US but are not eligible for a Social Security Number (SSN). Foreign nationals or tourists will need to acquire this specific TIN in the US in order for them to file their NRA tax return.
How can a non-US citizen get an ITIN number?
Non-US citizens will need to acquire and complete Form W-7, the formal application for an ITIN, along with verified identity documents such as their foreign passport or driver’s license.
Form W-7 is attached and mailed together with your non-resident alien tax return (Form 1014NR). The process will generally take 6-12 weeks, during which time you will also get your ITIN.
FAQS
What is a US tax treaty?
A US tax treaty is a formal agreement between the US and another country that outlines how income earned across borders is taxed in order to prevent double taxation. The idea is that you should not be taxed on the same income twice.
Why are other tax treaty countries not eligible for a tax refund?
Every treaty is different. Just because your country has a treaty with the US doesn’t automatically mean you can get tax back on gambling. You have to check what the treaty actually says about “gambling income”; many treaties exclude it.
What happens if I forgot to file my US taxes?
The IRS offers a streamlined tax amnesty program for US citizens who have not filed their taxes in the past few years due to non-willful acts (e.g., forgetting to file). This program will eliminate your penalties and fees for not filing taxes, which can be a huge savings.
Can I hire a professional to assist with recovering my taxes?
Yes, you can hire a professional to help you get your gambling tax refund from the US. They can help you apply for an ITIN, file your tax return, and effectively maximize your tax treaty with the US.
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