Hand pay question for Irish citizens.

Question

If(when) I hit a hand pay or better on the slots, I know that I have to pay tax on the win.

My question is twofold; is the standard amount 30 % of win, and can any or all of the taxed amount be recovered on return to my country (Ireland).

Just watched a guy from Canada on YouTube and he hit a few hand pays in Vegas, but kept the tax receipts as he said he can get it back on his return home.

Is this just a thing for Canadian residents?

(Reposted under edited heading on the sound advice of IrishFan).

Steve

Answer

When you hit a hand pay in Las Vegas, it means you've won an amount that requires a casino employee to hand you a physical payment rather than a ticket. In terms of tax, the following applies to foreign visitors such as Irish citizens:

Tax Rate for Foreign Visitors:
- The IRS requires that non-resident aliens (i.e., foreign visitors) are subject to a flat withholding tax of 30% on winnings over $1,200 from slot machines, progressive slot machines, and video poker (this is the "hand pay" threshold).
- This withholding tax is automatically deducted by the casino when you receive your hand pay, and they will provide you with a W-2G form that details the amount of tax withheld.
Can Irish Citizens Recover the Tax?
- Unlike Canadian residents, who can claim a tax refund from the U.S. by filing a tax return, the process is more complicated for non-residents from countries like Ireland. Generally, Irish citizens cannot automatically recover the 30% tax withheld on gambling winnings from the U.S. directly.
- However, there may be a possibility of recouping some of the tax paid through a tax treaty between the U.S. and Ireland. The U.S.-Ireland tax treaty allows for some relief from the tax, but it’s not straightforward. The refund would typically require filing a U.S. tax return (Form 1040-NR) and including the W-2G form that you received from the casino.
- Irish citizens would have to go through the U.S. tax filing process to seek a refund, which might involve additional paperwork, time, and possibly legal assistance.
Canadian vs. Irish Tax Recovery:
- For Canadian residents, there is a simpler process because Canada has a more straightforward tax treaty with the U.S. Canadian players can generally claim back the tax withheld on gambling winnings more easily than other foreign visitors. This is why you may see Canadians on YouTube claiming tax refunds on their winnings.

In summary, the 30% tax is standard for non-U.S. residents, including Irish citizens. While Canadians can generally recover this tax more easily through their tax treaty with the U.S., the process for Irish citizens is more complex and requires filing a U.S. tax return. If you do decide to pursue a refund, it's a good idea to consult with a tax professional who specializes in U.S. tax laws for non-residents to help guide you through the process.