[beners]

I am a UK resident going to Las Vegas next week and whilst looking at the various poker rooms I have read about various withholdings that happen for certain countries, i.e. those without a tax treaty with the US or that prizes of $600 or more will require a W2-G or 1042-S form and a valid photo identification.

Just wanting to clarify if anything I win is taxable? Do I need to do anything in advance or whilst I'm there to prevent/minimise this?

Cheers

[AtlantaTaxExpert]

Technically, ANY winning in Las Vegas is subject to U.S. income taxes.

In practical terms, the poker rooms will NOT attempt to withhold money unless your winnings are well in excess of $2,000, and then probably not even then. It varies from casino to casino.

[IntlTax]

In general, nonresident aliens are subject to NRA withholding at 30 percent on the gross proceeds from gambling winnings in the United States if that income is not effectively connected with a U.S. trade or business and is not exempted by treaty. The winnings and the tax withheld are reportable on Forms 1042 and 1042-S.

No tax is imposed on nonbusiness gambling income a nonresident alien wins playing blackjack, baccarat, craps, roulette, or big-6 wheel in the United States. A Form W-8BEN is not required to obtain the exemption from withholding, but a Form W-8BEN may be required to inform the withholding agent that the person is a foreign person, that is, Form 1099 reporting and backup withholding would not be applicable. When a Form W-8BEN is submitted to the withholding agent solely for the purpose of identifying the payee as a foreign person, a taxpayer identifying number (TIN) is not required on such Form W-8BEN.

Most gambling winnings are subject to reporting on Form 1042-S. However, proceeds from a wager placed in blackjack, baccarat, craps, roulette, or big-6 wheel are not amounts subject to reporting.

Under the U.S.-U.K. Income Tax Treaty, gambling income of residents of the United Kingdom is not taxable by the United States. U.K. residents must provide a Form W-8BEN (with a valid U.S. Taxpayer Identification Number (TIN)) to claim treaty benefits on gambling income that is not effectively connected with a U.S. trade or business.

Regulations generally provide that a taxpayer identifying number (TIN) must be furnished on a Form W-8BEN or Form 8233 in order for a foreign individual to obtain the benefit of reduced withholding under an income tax treaty. The U.S. Treasury Department and the IRS are aware of certain unusual cases in which an unexpected payment to a nonresident alien individual claiming treaty benefits arises on short notice. In general, a foreign individual receiving such an unexpected payment currently may be unable to obtain a TIN prior to payment. In such a case, unless the foreign individual already has a TIN, the withholding agent would be required to withhold tax at the 30 percent rate, rather than the treaty rate, and the foreign individual would be required to file for a refund in order to obtain the benefits of the income tax treaty. To alleviate this filing burden on foreign individuals, IRS has put in place administrative procedures that will allow certain withholding agents, who also are acceptance agents and who make unexpected payments to foreign individuals, to apply for and obtain an individual taxpayer identification number (ITIN) for such individuals on an expedited basis.