For A US Nonresident, When Is A Keno Jackpot Taxed?
The IRS' rules for taxing nonresident keno winnings are relatively straightforward. Any US nonresident with a winning keno ticket that wins $1500.00 USD or more (after deducting the original cost of the wager) is taxed at a rate of 30%. If your winning keno ticket is for $1499.99 USD or less (after deducting the original cost of the wager), then it is your lucky day as you can claim the entire amount of your keno payout without the intrusion of Uncle Sam. However, if your winning keno ticket is for $1500.00 USD or more (after the original wager deduction), the taxes will be automatically withheld by the gaming establishment, and your keno payout will be 30% less than the full amount of your keno win.
Despite the previously outlined IRS rules for keno tax at most US gambling venues, the IRS also mandates US casinos and other US gambling establishments run by Indian tribal governments to assess the 30% keno tax on all keno winnings (without the need to meet a specified threshold) for US non-residents.
Can I Get My Keno Winnings Back From The US Government?
If you have gambling losses of any kind from the United States in the same taxation year, you can recover part or all of the keno money withheld by the IRS. For instance, if you have a $2000.00 USD
keno win, the IRS would have subjected you to $600.00 USD (30% of $2000.00 USD) of withholding taxes. You can get a full tax refund of the withheld taxes ($600.00 USD) if you have at least $2000.00 USD of gambling losses in the same taxation year to deduct against your
keno payout.
What happens if you have only $1000.00 USD of gambling losses from the US in the same taxation year to claim against your $2000.00 USD
keno jackpot? Then, you would only get a partial tax refund of the gambling taxes withheld by the Internal Revenue Service. To calculate the partial tax refund that you should expect from the IRS, you would start by deducting your gambling losses in the same taxation year from your
keno jackpot. Your net gambling income for the taxation year should be $1000.00 USD ($2000.00 USD
keno win subtract $1000.00 USD of gambling losses). At a tax rate of 30% on your net gambling income of $1000.00 USD for the taxation year, the IRS should have withheld $300.00 USD instead of $600.00 USD deducted at the time of your
keno win. Thus, you should expect to receive the difference of $300.00 USD as a tax refund.
There is basically no downside to applying for a refund on the taxes withheld on your
keno jackpot. The vast majority of gambling winners generally have gambling losses, and thus should be eligible for a tax refund from the IRS.
What Documentation Does A Keno Winner Need?
Non resident
keno winners to the United States are given an IRS form 1042-S at the time of the
keno payout. You will need this IRS form as proof of your
keno winnings. If you have lost or misplaced this form, the gambling establishment is obliged to issue you a copy.
You should also keep any losing keno and lottery tickets, wagering tickets from dog and horse racing, records of slot machines plays, etc. In case you hit a jackpot and are assessed gambling taxes, your old gambling stubs can be used to support your claims of gambling losses. Gamblers should also make a note of the date, time, location of their various other US gambling activities. Cancelled checks, airline tickets, and old hotel receipts, etc., can be used to show one's presence in American gambling locales.
Keno Winners: How U.S. Gambling Refund ™ Can Help You
Many US nonresident keno winners forego their opportunity to reclaim their keno taxes. Most or all of the keno payout is legally yours, except the foreign tax codes are not readily known to most people! US Gambling Refund ™ is knowledgeable in both US and Canadian tax codes and will ensure the largest refund on your partially withheld keno jackpot, with minimum fuss to you. You have nothing to lose!
If you have been assessed withholding taxes or simply want more information, contact us now to see how we can help you get back your 30% withheld keno winnings!
