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Tax Withholding for Non-U.S. Winners: Compliance and Treaty Considerations
March 27, 2024
Q. If we host a rodeo and some of the cowboys are from Canada, do we need to withhold 30% from the prize money?
A.
Answered by IOFM's third-party tax experts.
If a winner is not a U.S. person (not eligible to give you Form W-9 certifying U.S. status) then Yes the payment of prize money is subject to the 30% U.S. federal income tax withholding requirement, as a payment of U.S.-source income (earned within the U.S.) to a non-U.S. person. If a winner is able to give you IRS Form 8233, fully…
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