https://ktla.com/news/local-news/winning-2-04-billion-powerball-ticket-sold-in-altadena/
There was only 1 winner of the $2.04 Billion powerball lottery.
i would love for a canadian to win this and not have to pay any income tax on it.
shareLottery winnings are taxed not matter where the person is from.
shareno, canadian residents would pay no tax on winnings. same for gambling winnings in vegas. there's a tax treaty.
shareInteresting...I did a quick check...what is likely to happen is that the IRS will automatically withhold a substantial percentage, then the Canadian citizen will have to do paperwork to get that money back...this company says they can help with that - https://www.refundmanagement.com/canadian-wins-us1-million-powerball-prize/
shareyes. there is a process. i know people who have won money in vegas and get the withheld money refunded.
shareThe IRS takes a 30% withholding fee for anything over $1,200 no matter residency.
shareit's withheld and would be refunded to a canadian resident. there is some paper work.
shareSeems you're correct. Here's a good article explaining it.
https://ca.finance.yahoo.com/blogs/insight/how-canadians-can-get-back-the-taxes-on-their-u-s--gambling-wins-194428465.html
Have you ever come across anything like this as an accountant?
i know people who have won considerable amounts in vegas and were able to get the withheld money refunded to them. the casinos explain the process to non americans who come from countries with tax treaties. i would assume if you are from a non tax treaty country you are out of luck.
share