Canadians with U.S. Gambling Income

Canada USA Taxes

Canadian Resident

If you are a Canadian resident and have had 30% tax withheld from lottery or gambling winnings in the United States, some or all of the tax can be recovered if:

  • You also have U.S. gambling losses to offset some or all of the winnings or
  • U.S. taxes were withheld from blackjack, baccarat, craps, roulette, or big-6 wheel winnings.

Canadian residents must file a U.S. tax return to get a refund from the IRS (Internal Revenue Service) of U.S. income taxes withheld from lottery winnings or gambling winnings. The US return to be filed is Form 1040NR, US non-resident alien income tax return. You can e-File this form via Start and eFileIT:

Sign up and start now | 1040-NR Instructions

Your lottery winnings, as well as your gambling winnings and losses, will be recorded on Schedule NEC (as part of Form 1040NR) as long as you are not engaged in the trade or business of gambling. Start your return using the link above - otherwise, fill in the forms manually via the instructions below.

  • Access Schedule NEC for Form 1040-NR here.
  • Instructions: Gambling and lottery winnings for residents of Canada are included on line 10a of Schedule NEC. Proceeds from lotteries and raffles are also included on line 10a, but winnings from blackjack, baccarat, craps, roulette, or big-6 wheel are not included here. Gambling losses are entered on line 10b, with net gambling income (zero if negative) entered on line 10c.

If you have winnings from blackjack, baccarat, craps, roulette, or big-6 wheel, and the casino gave you a Form 1042-S (Foreign Person’s US Source income subject to withholding) showing that tax was withheld, enter these winnings in column d of line 10, with a tax rate of zero. You can claim a refund of the tax.

U.S. Citizens in Canada and Retirement

You transfer property to your RRIF carrier from an RRSP, a PRPP, an RPP, an SPP, from another RRIF, or from an FHSA and the carrier makes payments to you.

The minimum amount must be paid to you in the year following the year the RRIF is entered into. Earnings in a RRIF are tax-free and amounts paid out of a RRIF are taxable on receipt.

Details about Registered Plans for Retirement or RRSPs

US and Canadian Tax Treaty

View the US-Canadian Tax Convention or Treaty.

Read more here about foreign Income, international income earned by US citizens, the Foreign Earned Income Exclusion, and nonresident aliens and taxes.