How to claim back the money for Form 1042-S

Tilter

So I cashed in a WSOP Event, and they took 30% ~ $700 away.

What is the best way for me to claim the money while losing as little as possible of it.

Thanks

BigBoss

Been here alot about Refund Management, u could check them out.

Showing Up

http://www.irs.gov/pub/irs-pdf/f1040nr.pdf

http://www.irs.gov/individuals/article/0,,id=96287,00.html

RAM_Eh

I am very interested to know if anyone has gone through this process?

I got a cash also, but what is the break even number? Anyone ever did the process on there own?

CanadaKev

Ive said it before and ill say it again.
I have a bunch of old withholdings and I have never done anything about it.
It seems to only be worth doing if it's money you NEED.
A couple hundred at a time like it has been for me, seems to be pointless trying to reclaim.

moose

As far as I know you can only get back 100% of the taxes on certain types of gambling income. Poker is not one of them. The US charges a flat 30% withholding on any US source income. Since there is a tax treaty btwn Canada and the US, the tax treaty allows for this to be reduced to 15%. I don't know of any 'simple form' to do this. I believe the impression that there is, comes from the fact that it is a relatively simple procedure to have tax witholding on US dividends reduced to 15% through your broker. But as far as actually claiming a refund, you would have to actually file your taxes with the IRS. In my experience, anything to do with the IRS is an unbelievable nightmare of forms and fine print.

luckystrike

sorry to resurricate this but has anyone had any success with the 1042-S refund??

PokerKai

I have preemptively spoken with some tax people as I plan to be playing a few tournaments in the states and here is the main jist of the conversation i had with them. This is passed on information and I dont claim to be an expert so treat it as such and not as if it came out of a burning bush.

KEEP ALL RECEIPTS. It appears that you can only retrieve portions of the withholding tax by claiming the expenses you incurred during the fiscal year of your winnings. So basically you can claim flights, meals, gas, hotel stays, tournament buyins...etc etc and get back a good portion of what was withheld.

luckystrike

wow crap, and the tournament director was like " just give this to your govt and you get all your money back", i had a feeling it wasn't that easy, is there a tax place that'll do it for us? like h&r block or something

dibbly

I received a large payout in 2009 and got a significant refund on my 1042s by filing a 1040NR (I had some losses to use against the winnings).

I got these guys to file for my refund:

US Gambling Tax Refund and Recovery | Phil Hogan

Hope that helps.

Dibs

Milo

"Search" function turns up the following:

http://www.pokerforum.ca/f10/guide-recovering-withheld-taxes-usa-19432/?highlight=Voodoo

dibbly

That's a great resource, however as a Canadian non-resident you still need and acceptance agent to help file the W-7 or it will get rejected. I found it was a lot easier to get someone else to complete both forms for me.

I had a friend try and file both the 1040NR and W7 and his W7 got rejected. He then had to call my guy to get it cleared up...but he did get his money eventually.

I guess it depends on the potential refund. For any refund over $1,500 I would suggest paying someone to help with the forms.

Dibs

Hobbes

dibbly wrote: »

That's a great resource, however as a Canadian non-resident you still need and acceptance agent to help file the W-7 or it will get rejected. I found it was a lot easier to get someone else to complete both forms for me.

My W7 went through just fine Phil.

moose

yeah that's a bunch of crap. anyone can file for an ITIN