UK resident - US gambling win - tax form 1042S

[iwantagta]

Hi - I managed to win $3k on a slot machine on my recent trip to USA!

They took $912 in tax off me and handed me a 1042-S form.

I am really struggling to understand how i'm supposed to get my money back!

Anyone know anything on how to get my money back - i don't fancy paying a 3rd party as i suspect its simple if you know what you are doing!)

[AdamIM]

HI,

You have been charged the standard 30% withholding tax on 'winnings'.The above form is 'informative' (a receipt for your records). To claim it back as a Non Resident you will need an IRS tax Nr (Fill out a Form W-7 to obtain one). You will then need to file a Tax Return in the US. You may be able to do all this yourself if you have the time and inclination or you could use an agency which will charge you (less than the tax rebate-probably)

You might strike it lucky again and a CPA on the boards might give you some pointers.

All the best

Adam

[goingonholiday]

Doesn't help you now but they shouldn't have witheld as your profit was less than $5k. They have witheld the 30% so you now need an ITIN from the IRS. You might be able to do this yourself by completing a W-7 form and providing original documents. However, if you make any sort of mistake then it'll get rejected and it will take months. Even though we speak English and the US speak english, the IRS forms are not straightforward! Best to use an agency if you can find one for a reasonable price.

Google getting an ITIN and various options will come up.

Congrats on the win!

[goingonholiday]

Something I forgot, for your next big win! Many of the large strip properties will have staff who can complete the forms on site to get you an ITIN. Wynn, Venetian etc. Though for some reason the horseshoe doesn't have this facility despite paying out millions to foreign nationals at this years and last years WSOP.

From the address on your form you were off strip, assume a smaller casino. I think you were a bit unlucky that they witheld for $3k and unlucky it wasn't a casino with an IRS agent employee who could complete the forms.

[iwantagta]

Thanks all.
To add to the mix I am probably moving out there for work in a couple of months so assume i will get an ITIN then?
Do i just need to wrap this up in that and do it as part of my general tax return?

Eurgh Its so complex....

[goingonholiday]

iwantagta said:

Thanks all.
To add to the mix I am probably moving out there for work in a couple of months so assume i will get an ITIN then?
Do i just need to wrap this up in that and do it as part of my general tax return?

Eurgh Its so complex....

Yes just wrap it all up, you'll need to do a US tax return if you generate income in the US.

[Kirkmoly]

iwantagta said:

Thanks all.
To add to the mix I am probably moving out there for work in a couple of months so assume i will get an ITIN then?
Do i just need to wrap this up in that and do it as part of my general tax return?

Eurgh Its so complex....

Don’t worry about it. You could file a dual status return at the end of the year, basically a 1040 with a 1040nr attached. The 1040NR will have just your gambling win withholding on it. Unless your affairs are extremely complex you’ll be able to fill in to 1040NR manually (takes 5 minutes). The 1040 you’ll probably use a filing software so that you get the state vs federal tax correct. Again a simple task, maybe an hour at max for the 1040.

If it all gets a bit tough, my own experience is that the IRS is extremely helpful when you call them.

[iwantagta]

Thanks all!

[Panamax]

AdamIM said:

You have been charged the standard 30% withholding tax on 'winnings'.The above form is 'informative' (a receipt for your records). To claim it back as a Non Resident you will need an IRS tax Nr (Fill out a Form W-7 to obtain one). You will then need to file a Tax Return in the US.

Yes, this is OT but US witholding taxes are a nice little earner for the IRS in tackling tax evasion by foreigners.

You know those people who buy a holiday home in Florida and "never rent it out" (cough) and never register with the IRS? Well, they get a bit of a shock when they sell the property and find there's a 15% witholding tax from the gross selling price.