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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10479
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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What is non-resident Tax(non Canadian) to a U.S. citizen? I

Customer Question

What is non-resident Tax(non Canadian) to a U.S. citizen? I have a letter and check that indicates that I owe $5,500.00 which is to be paid with the check in order to claim a prize.
Is this true?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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No this is a scam.

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A VERY common method - (telling someone that that they've won a prize or sweepstakes, then asking for a pre-payment of the "taxes" in order to claim the prize.

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There ARE certain times (such as gambling or REAL sweepstakes winnings) where tax is withheld FROM the check.

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And both federal and state taxes are due on gambling and sweepstakes winnings (you'll get a W2-G for example form casino winnings so tht you can report your income and pay taxes).

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But when someone tells you that you must PAY taxes to GET the prize, that's a scam ....a very common one.

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The victims send in the "tax" and the prize is never heard from again

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Please do not respond to them

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Let me know if you have any questions at all

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Lane

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If this HAS helped, and you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's the only way I'll be credited for the work here.
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