Casino Tax Refund for International Visitors to the USA
Form 8233 – Refund of the 30% federal withholding tax on Non-Residents for Casino Tax Refund
Gambling winnings for Non-Residents require a 30% federal income tax withholding on payments (i.e. casino winnings). However, some payments may be exempt from withholding because of a tax treaty., such as certain countries that have negotiated special provisions for casino winners on casino taxes.
You can use Form 8233 to claim a tax treaty withholding exemption on certain types of income and as a result not pay the 30% withholding tax..
Definitions for taxes on Gambling Winnings
Nonresident Alien
To determine whether you are a resident or nonresident of the USA certain rules apply for tax purposes. Generally, you are a resident of the USA if you meet either the “green card test” or the “substantial presence test” for the calendar year. Any person not meeting either test is generally a nonresident alien. Additionally, an individual who qualifies as a “resident of a treaty country” (defined later) or is a resident of Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, or American Samoa is a nonresident alien individual.
For more information on the tests used to determine residency, see Pub. 519, U.S. Tax Guide for Aliens. Note: Even though a nonresident alien individual married to a U.S. citizen or resident alien may choose to be treated as a resident alien for certain purposes (for example, filing a joint income tax return), such individual is still treated as a nonresident alien for withholding tax purposes on all income except wages.
Tax Treaty Withholding Exemption
An exemption from withholding tax is allowed under IRS regulation section 1441 that is based on a tax treaty benefit. See Resident of a Treaty Country next for requirements for claiming a tax treaty benefit on this form.
See the instructions for line 4 on page 3 for additional information for determining residence for purposes of claiming a tax treaty withholding exemption on this form.
Resident of a Treaty Country
An individual may claim to be a resident of a treaty country if he or she qualifies as a resident of that country under the terms of the residency article of the tax treaty between the United States and that country. See Nonresident Alien earlier.
Required Withholding Form(s) to apply for a refund of Casino Taxes
You should generally claim one withholding allowance. However, if you are a resident of Canada, Mexico, or the Republic of (South) Korea; a student from India; or a U.S. national; you may be able to claim additional withholding allowances for your spouse and children.
Required Withholding Form for the Casino Tax Refund
You should generally complete Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, to claim a tax treaty withholding exemption for this type of income. No Form W-8BEN is required unless a treaty benefit is being claimed.
Withholding Agent
Any person, U.S. or foreign, that has control, receipt, or custody of an amount subject to withholding or who can disburse or make payments of an amount subject to withholding is a withholding agent. The withholding agent may be an individual, corporation, partnership, trust, association, or any other entity, including (but not limited to) any foreign intermediary, foreign partnership, and U.S. branches of certain foreign banks and insurance companies. Generally, the person who pays (or causes to be paid) the amount subject to withholding to the nonresident alien individual (or to his or her agent) must withhold.
Beneficial Owner for Casino Winnings Taxes
For payments other than those for which a reduced rate of withholding is claimed under an income tax treaty, the beneficial owner of income is generally the person who is required under U.S. tax principles to include the income in gross income on a tax return. A person is not a beneficial owner of income, however, to the extent that person is receiving the income as a nominee, agent, or custodian, or to the extent the person is a conduit whose participation in a transaction is disregarded. In the case of amounts paid that do not constitute income, beneficial ownership is determined as if the payment were income.
Avoid Common Errors
To ensure that your Form 8233 is promptly accepted, be sure that you:
Specify the tax year for which this form will be effective in the space provided above Part I of the form.
*
Enter your complete name, addresses, and identifying number(s) in Part I.
*
Are not trying to claim tax treaty benefits for a country with which the United States does not have a ratified tax treaty.
*
Are not trying to claim tax treaty benefits that do not exist in your treaty.
*
Complete lines 11 through 14 in sufficient detail to allow the IRS to determine the tax treaty benefit you are claiming.
*
Claim the proper number of personal exemptions on line 15.
*
Complete the required certification in Part III.
source: irs.gov
