Cross-border · Canada–US treaty · Updated September 2026
Recover the 30% US Tax Withheld on Your Casino Win
A Canadian who hits a jackpot in the United States usually leaves 30% behind at the cage. Under Article XXII of the Canada–US tax treaty you can offset your US gambling losses from the same year and claim the excess back on Form 1040-NR. Estimate what is refundable, then work through the filing steps below.
Refund estimator (USD)
- Losses you can offset
- US$6,000
- Winnings still taxable in the US
- US$4,000
- US tax you owe
- US$1,200
- Estimated refund
- US$1,800
Estimate only. Losses count only if they are US-source, from the same calendar year, and backed by records; the refund can never exceed the tax actually withheld.
How to claim it, step by step
1. Get your Form 1042-S at the cage
The casino issues it when tax is withheld. Ask for it before you leave; chasing a copy months later from another country is slow.
2. Apply for an ITIN if you don't have one
Form W-7, filed with certified ID. You can file it together with the 1040-NR through an IRS Acceptance Agent, which avoids mailing your passport.
3. Document your US gambling losses for that year
Dates, venue, game, amount in and amount out for each session, plus win/loss statements from player's cards. Only US-source losses in the same calendar year count.
4. File Form 1040-NR with Schedule NEC and Schedule OI
Report the gross winnings, claim the treaty position under Article XXII, attach the 1042-S copies, and enter the withholding you are reclaiming.
5. Track the refund
Keep a copy of everything mailed. Most refunds land within four to six months; incomplete loss records are the usual reason a claim is reduced.
The claim lives or dies on your loss records. Log every US session — date, casino, game, buy-in, cash-out — as it happens. Start a session log or grab the free ledger template.
Common questions
Can Canadians get back the 30% withheld on US gambling winnings?
Yes, in part or in full. Article XXII of the Canada–US tax treaty lets a Canadian resident offset US gambling losses against US gambling winnings from the same calendar year, then claim the excess withholding back by filing Form 1040-NR with the IRS.
How much of my US gambling withholding is refundable?
The refund is 30% of your allowable losses, up to the amount actually withheld. If you won $10,000, had $6,000 of documented US gambling losses that year and $3,000 was withheld, roughly $1,800 is refundable and $1,200 stays with the IRS.
What documents do I need to claim the refund?
Your Form 1042-S from the casino showing the win and the tax withheld, an ITIN (apply with Form W-7 if you do not have one), a contemporaneous log of your US gambling sessions, and any win/loss statements from the casinos you played at.
How long do I have to file?
Generally three years from the due date of the return for the year of the win, so a win in 2026 can normally be claimed until mid-2030. Refunds typically take several months after the IRS receives a complete 1040-NR.
Do I also pay Canadian tax on the US win?
For a casual player, no. The Canadian windfall rule means the winnings are not taxable income in Canada, so the only tax at stake is the US withholding you are trying to recover.
Keep 1040-NR-ready records all year
NetBetTracker separates US-source and Canadian activity, so your refund package is already written when you file.
Start 7-day free trialGeneral information, not tax advice. Cross-border filings are fact-specific — confirm yours with a cross-border tax professional.