I have helped hundreds of people successfully navigate from the US to Canada. If you're thinking of moving or retiring to Canada contact me today to chat about your plans.
I can be reached via email at firstname.lastname@example.org, by phone at 250-661-9417 or through my contact page here.
I look forward to speaking to you soon.
Phil Hogan, CPA, CA, CPA (CO)
Cross-Border Tax and Investment Specialist
I’m not sure if I understand you question, however I’ll give it a shot….
- You win $10,000, they withhold $3,000
- You also have $5000 of losses
What should happen is that you report the $10,000 of winning less the $5,000 of losses for net income of $5,000. You’re taxed at 30% = $1,500. Since they withheld $5000 you should receive a refund of $3,500.
It’s possible that they are disallowing you losses because you failed to provide proof of you losses. I wasn’t aware that they required proof of losses unless they specifically asked for proof. Did they send you a letter requesting proof of losses after the return was filed?
I’m not sure if this is what happened. Did they provide any explanation on the letter they sent?
Feel free to give me a call at 250-661-9417.
Phil Hogan, CA