Gambling and lottery winnings collected by Canadians while staying in the United States are taxable.

The withholding rate for gambling winnings is 30 percent. Under the tax treaty between the United States and Canada, Canadians may offset their winnings with these losses while in the United States. Winnings from blackjack, baccarat, craps, roulette and big-6 wheel are not subject to the 30 percent withholding tax and are not taxable.

Canadians must file Form 1040NR, "U.S. Nonresident Alien Income Tax Return," to report their gambling and lottery winnings and to determine if any withholding is refundable due to gambling or lottery losses.

Publication 519, U.S. Tax Guide for Aliens, contains details on the subject. It is available by writing to the IRS Area Distribution Center, P.O. Box 85627, Richmond, VA 23285-5627, USA.

To get U.S. tax forms and instructions, you can download them here, visit a U.S. embassy or consulate, or use IRS TaxFax. From a Fax machine, dial IRS TaxFax at either (703) 368-9694 or (787) 759-4524; follow voice prompts to get IRS materials faxed back. Taxpayers may also call the IRS office in Puerto Rico for tax assistance at (787) 759-5100.

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