pinky Posted March 19 Report Share Posted March 19 Hi I have 1042-s form from casino in U.S last year (they took 30% of winning amount) I searched google and I need to report tax return when I apply canada tax return . so I tried to put all my information from simple tax by my self and look like I am not able to get money what amount U.S took it. For example U.S took tax from me $5000 and I only will get return $1000 when I apply canadian tax return with 1042-s together. (It is lot of money ... ) is it right amount? I am not U.S resident and I don't know why I have to pay tax to U.S depand on my canada income.. Do you have any idea how I can get 100% amount U.S TAX ? Should I hire accounter from U.S? Please let me know.. need help! Thanks alot! Quote Link to comment Share on other sites More sharing options...
Geo123 Posted March 19 Report Share Posted March 19 Hello pinky, RE : Do you have any idea how I can get 100% amount U.S TAX >>No - please consult an accountant The 1042-S should be entered as follows To enter these IRS slips:.For example [1042-S / 28 Gambling winnings] >>>Interview setup (left hand navigation pane - - beneath “CRA Express NOA”) >> Double click “interview setup” >>On right hand of screen Find the section [Investment income and expenses] >>Select Foreign income or foreign property (T1135) - - > >>Foreign capital gains - Stock, mutual funds & other non depreciable property >>In the section [Foreign non-business income] >>Income from foreign dividends (or interest / capital gains / other) *Country from where you received the foreign income If the country signed a tax treaty with Canada, a deduction under 20(11) will not be allowed. [United States (tax treaty with Canada)] *Description of the source of the foreign income [1042-S / 28 Gambling winnings] If you are entering amounts in Canadian dollars, enter 1 for the exchange rate. The average exchange rate for $US was 1.3497 in 2023. See the Bank of Canada's website (www.bankofcanada.ca) for other exchange rates. *Exchange rate to apply [1.3497] *Amount of foreign income received [$1,000.00] *Amount of foreign tax paid [$250.00] Quote Link to comment Share on other sites More sharing options...
TeaganHeath Posted March 27 Report Share Posted March 27 It's crucial to report your 1042-S form when filing your Canadian tax return, especially if you've had taxes withheld by a U.S. casino. To ensure you're claiming the correct refund, consider seeking professional tax advice or using tax software tailored for these situations.Regarding online gambling, if you're interested, you might want to explore best casino bonuses online for potential opportunities to enhance your gaming experience. These bonuses could provide added value and potentially offset some of the taxes withheld from your casino winnings. Quote Link to comment Share on other sites More sharing options...
walhay Posted March 27 Report Share Posted March 27 I have a similar issue. I've been playing at an online casino on this site and now I want to withdraw my money, but despite the site claiming to be Canadian, I don't see any confirmations of that. In this case, do I need to hire an accountant before withdrawing these funds? Also, if anyone has encountered a similar situation, is there a way to find out in which country this casino is registered on my own? Quote Link to comment Share on other sites More sharing options...
Geo123 Posted March 27 Report Share Posted March 27 Hello walhay, To enter these IRS slip 1042-S:.(assuming you are a Canadian resident) >>>Interview setup (left hand navigation pane - - beneath “CRA Express NOA”) >> Double click “interview setup” >>On right hand of screen Find the section [Investment income and expenses] >>Select Foreign income or foreign property (T1135) - - > >>Foreign capital gains - Stock, mutual funds & other non depreciable property >>In the section [Foreign non-business income] >>Foreign income - other *Country from where you received the foreign income If the country signed a tax treaty with Canada, a deduction under 20(11) will not be allowed. [United States (tax treaty with Canada)] *Description of the source of the foreign income [Gambling IRS 1042-S code 28] If you are entering amounts in Canadian dollars, enter 1 for the exchange rate. The average exchange rate for $US was 1.3497 in 2023. See the Bank of Canada's website (www.bankofcanada.ca) for other exchange rates. *Exchange rate to apply [1.3497] *Amount of foreign income received [$100.00] *Amount of foreign tax paid [$10.00] Quote Link to comment Share on other sites More sharing options...
Taduro Posted May 29 Report Share Posted May 29 On 3/19/2024 at 9:55 PM, Geo123 said: Hello pinky, RE : Do you have any idea how I can get 100% amount U.S TAX >>No - please consult an accountant The 1042-S should be entered as follows To enter these IRS slips:.For example [1042-S / 28 Gambling winnings] >>>Interview setup (left hand navigation pane - - beneath “CRA Express NOA”) >> Double click “interview setup” >>On right hand of screen Find the section [Investment income and expenses] >>Select Foreign income or foreign property (T1135) - - > >>Foreign capital gains - Stock, mutual funds & other non depreciable property >>In the section [Foreign non-business income] >>Income from foreign dividends (or interest / capital gains / other) *Country from where you received the foreign income If the country signed a tax treaty with Canada, a deduction under 20(11) will not be allowed. [United States (tax treaty with Canada)] *Description of the source of the foreign income [1042-S / 28 Gambling winnings] If you are entering amounts in Canadian dollars, enter 1 for the exchange rate. The average exchange rate for $US was 1.3497 in 2023. See the Bank of Canada's website (www.bankofcanada.ca) for other exchange rates. For someone like me who enjoys online betting, this is incredibly useful. Neteller is known for its reliability and quick transaction times, making it an ideal choice for managing betting funds. The website https://legalbet.uk/betting-sites/sets/neteller/ lists various bookmakers, each with their own unique offerings such as competitive odds, extensive betting markets, and lucrative promotions. This allows me to find a bookmaker that not only supports Neteller but also meets my betting preferences. With Neteller, I can make deposits instantly and withdraw my winnings without any hassle. This discovery has streamlined my online betting process, making it more convenient and enjoyable. *Exchange rate to apply [1.3497] *Amount of foreign income received [$1,000.00] *Amount of foreign tax paid [$250.00] Where you’ll find a comprehensive selection of office furniture and accessories tailored to improve your work environment. Our offerings include ergonomic adjustable desks https://www.progressivedesk.ca/ , durable desk frames, and practical accessories designed to boost your efficiency and comfort. Whether you’re upgrading your current setup or starting anew, our products are crafted to meet the highest standards of quality and functionality. Explore our range and elevate your workspace by visiting here. Quote Link to comment Share on other sites More sharing options...
Vedazzle Posted September 4 Report Share Posted September 4 You need to file a tax return with the US. You need to apply and get an ITIN number....once you have that you file can file a return. You don't claim the money back from Canada. This process is easy and I have done it myself for the last 5+ years. Each year the 1040NR form changes a bit, but it's very straight forward. For example, I filed for 2023 and this year I needed to include a 1040-NR FORM Quote Link to comment Share on other sites More sharing options...
Doi Posted September 25 Report Share Posted September 25 @UFile Hey guys! Please note that there is a problem with the UFile app in regards to handling taxes collected in the US on interests on a Canadian citizen account (Form 1042-S). Ufile calculates the taxes considering the withheld taxes on 1042-S. But according to Article 11 (XI) Interest, paragraph 1, the taxes collected on interest in US are not relevant for Canada tax returns: Article XI Interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. In other words, Canada is the only entity allowed to tax interest generated in US, on a Canadian citizen account. The only way of getting back the US withheld taxes on interests (avoiding double taxation) being to fill in a 1040-NR form + Schedule OI (for form 1040-NR) and mail them to IRS. Quote Link to comment Share on other sites More sharing options...
Geo123 Posted September 25 Report Share Posted September 25 Hello Doi, Thanks for the update. lease note this this is a CRA issue and not a UFile issue, please verify with the CRA. Line 40500 – Federal foreign tax credit https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-40500-federal-foreign-tax-credit.html Quote Link to comment Share on other sites More sharing options...
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