When Are Bingo Wins Taxed?
If you win a
bingo jackpot that is at least $1200.00 USD, you will be assessed a withholding tax of 30% on your
bingo winnings. However, if you have several
bingo wins that add up to $1200.00 USD or more in a taxation year, you will NOT be taxed on the aggregate amount. It is important to note that some Indian tribal bingo halls and casinos in the United States may assess the 30%
bingo tax on all
bingo winnings (without the need to meet a specified threshold) for US non-residents.
Why Do US Nonresident & Canadian Bingo Players Visit US Bingo Halls?
There is no
bingo tax on
bingo jackpots in most international countries and in Canada. So, it is a bit peculiar as to what draws bingo players to play at bingo halls in the United States when larger
bingo wins are taxed at a rate of 30%. As with most types of gambling, American bingo halls offer larger jackpots than their Canadian and international counterparts. This is especially true in the case of progressive
bingo jackpots, which benefit from having many bingo players in multiple bingo halls.
How Are Bingo Taxes Calculated?
As discussed earlier, any
bingo win of $1200.00 USD or more will be taxed at a rate of 30%. For example, if you win a
bingo jackpot of $2000.00 USD at one time, you will be taxed $600.00 USD ($2000.00 USD X 30% withholding tax). In this case, you will get to take home $1400.00 USD after
bingo taxes are withheld. Yet, if you have gambling losses in the United States of $2000.00 USD or more in the same taxation year, you can have all of the IRS taxes on bingo refunded.
If your gambling losses are not as large as your
bingo jackpot, part of your
bingo taxes can be refunded. For example, using the same $2000.00 USD
bingo win, with only $1000.00 USD in gambling losses this time, the IRS will calculate your
bingo taxes by subtracting your gambling losses from your taxable
bingo win. If you subtract $1000.00 USD of gambling losses from your $2000.00 USD taxable
bingo jackpot, you have a net of $1000.00 USD in taxable gambling wins. With the
bingo tax rate of 30%, you should have paid $300.00 USD in
bingo tax instead of $600.00 USD, which would have been withheld at the time of your
bingo win. Thus, you would receive a refund for the difference of $300.00 USD in
bingo taxes.
What Documentation Do Bingo Winners Need?
If you have won a
bingo jackpot in the United States, you would have been given an IRS form 1042-S. If you have lost or misplaced this form, you can attain a copy of the IRS form from the bingo hall or parlor that issued it. In addition, all bingo players should keep supporting documentation of their various U.S. gambling losses. Old lottery tickets, race stubs, records of slot machine plays are all considered to be supporting evidence.
Bingo Winners: How U.S. Gambling Refund ™ Can Help You
The IRS tax codes are complicated and difficult to understand. US non residents attempting to reclaim their IRS taxes on
bingo winnings are forced to navigate a jungle of different agencies and regulations. US Gambling Refund ™ is an IRS Certifying Acceptance Agent, and can ensure an efficient and hassle-free tax refund from the IRS. We are knowledgeable of both US and Canadian tax laws, allowing you to focus on enjoying your
bingo winnings. US Gambling Refund ™ serves both Canadian and international gamblers to the US. You could be eligible for a refund for your withheld
bingo tax. You have nothing to lose as we have a no refund no fee guarantee!
If you have had
bingo taxes assessed or simply want more information, contact us now to see how we can help you get back your 30% withheld
bingo winnings!
