I am a US citizen, if I win in casino in Canada do I have to pay tax in the US?

Question

So how much tax I have to pay? and if I bring this money across the border let's say more than USD30.000 do I have to show where I win it from?

Answer 1

Yes, you will have to pay tax as soon as you cross the border back into the U.S.

Answer 2

The Canadian government does not tax casino or lottery winings, so there is no tax forms to fill out nor is there any withholdings. That being said you would be legally required to pay taxes in the US if you are a US citizen.  American citizens are required to report worldwide income.  That being said there is no reporting between the US and Canada.  This means that the Canadian government will not notify the IRS of your good fortune.  So, in the end it's on you to report or not to report.  The law says you should.

Answer 3

Gambling winnings from Canada are taxable in the USA and should be reported in the appropriate manner on your tax return. I have have never heard about anyone with casino winnings being subjected taxes being levied at the border here in the Detroit/Windsor crossing, but it has been several years since I was at the casino in Windsor.

If you have a large win and are frequent gambler, no matter where, either in the US or Canada, speak to a tax  accountant about this, as he may be able to offset the win income with prior losses in gambling, or other expenses related to the gambling income.

I am not a tax accountant or a CPA, and your best bet is always to contact a professional for tax advice.

Answer 4

Yep! Uncle Sam wants his share of your good fortune. Why would you think otherwise?

Answer 5

I am not sure where all of these other people are getting their info, but you do not have to pay taxes in the U.S. on Canadian winnings.

I won a $3,000 jackpot at Fallsview Casino in Niagara Falls Canada and I never had to pay a penny of taxes to Canada or to the U.S.

If you win a big amount of money, how will the U.S. border guards ever know?? You don't need to tell them or declare it on your taxes. Enjoy the winnings!!

Answer 6

Of course, income is income, Uncle Sam doesn't care where you made it.

Edit : Hey Luva, just because you didn't pay taxes on your Canadian winnings, that does not mean that you weren't supposed to pay the taxes.  Those winnings should have been declared to the IRS when you did your taxes.  The fact that you didn't pay taxes on the winnings doesn't change the law.