We understood what you said. If Canada will allow you to claim IRS money from the U.S. government back what is that under for your taxes? Is it something that reduces your tax burden like reducing your adjusted gross income (or similar in Canada)? Or do they actually comp you the entire amount that you paid to the U.S. government like a check back for what you paid to the U.S.? Or something else?
None of that seems terribly likely.
This seems to be a basic misunderstanding of how A) the IRS taxes nonresident alien gambling winnings and B) doesn’t intend to give that back to anyone short of there being a treaty. The only treaty that would apply for Canada is one that might allow US gambling losses to offset US gambling winnings. I don’t think that would put much of a dent in taxes for a Powerball jackpot though. I’ve heard of US lottery players who keep their tickets to help offset any taxes on winnings that are reported. There’s that movie of a guy who figured out how to win at a lottery and he kept all the old tickets to apply as a gambling expense for his corporation where he paid all taxes and his investors paid all taxes.
That being said, there are some Canadian companies claiming that they might be able to get some of it back, but I’m skeptical. The IRS doesn’t mention it.
One of the weirder things is a US federal law that makes it illegal to bring in a lottery ticket into the United States, which might be needed to redeem it if someone comes back to the US to handle it. Not sure it’s well enforced. It’s considered an “immoral article” although there’s an exception for US lotteries where the ticket is somehow printed in Canada. Doesn’t sound likely though.
U.S. Code § 1305 - Immoral articles; importation prohibited
(a)Prohibition of importation
All persons are prohibited from importing into the United States from any foreign country any book, pamphlet, paper, writing, advertisement, circular, print, picture, or drawing containing any matter advocating or urging treason or insurrection against the United States, or forcible resistance to any law of the United States, or containing any threat to take the life of or inflict bodily harm upon any person in the United States, or any obscene book, pamphlet, paper, writing, advertisement, circular, print, picture, drawing, or other representation, figure, or image on or of paper or other material, or any cast, instrument, or other article which is obscene or immoral, or any drug or medicine or any article whatever for causing unlawful abortion, or any lottery ticket, or any printed paper that may be used as a lottery ticket, or any advertisement of any lottery. No such articles whether imported separately or contained in packages with other goods entitled to entry, shall be admitted to entry; and all such articles and, unless it appears to the satisfaction of the appropriate customs officer that the obscene or other prohibited articles contained in the package were inclosed therein without the knowledge or consent of the importer, owner, agent, or consignee, the entire contents of the package in which such articles are contained, shall be subject to seizure and forfeiture as hereinafter provided: Provided, That the drugs hereinbefore mentioned, when imported in bulk and not put up for any of the purposes hereinbefore specified, are excepted from the operation of this subdivision: Provided further, That the Secretary of the Treasury may, in his discretion, admit the so-called classics or books of recognized and established literary or scientific merit, but may, in his discretion, admit such classics or books only when imported for noncommercial purposes: Provided further, That effective January 1, 1993, this section shall not apply to any lottery ticket, printed paper that may be used as a lottery ticket, or advertisement of any lottery, that is printed in Canada for use in connection with a lottery conducted in the United States.
I read somewhere that this has concerned enough Canadians buying Washington state lottery tickets that they’re willing to work with potential winners to avoid the confiscation. Not sure if they would accept a photo or maybe cross the border to verify. Or maybe worok with CPB.
https://www.ctvnews.ca/canada/u-s-lottery-vows-to-help-canadian-powerball-players-collect-prize-1.2735256