Are you a recreational player and a citizen of Canada?
A recreational player simply likes gambling in online casinos and does not use gambling as a way to make money. Once you have determined whether you are a recreational or professional player, it becomes slightly easier to understand what tax laws apply to you. Please note, should you earn interest on your winnings, you must legally declare that on a T5 form. The interest you have earned is taxable.
Your Gambling Taxes Checklist:
- Canadians do not have to pay taxes on gambling winnings from horse racing, sports betting, lotteries, online casinos and any other games of chance.
- If you are a professional or full-time gambler, you are required to file taxes. But any losses from gambling, as well as any travel costs, can be deducted from your total "income" as a professional or full time gambler as they are regarded as business expenses. In many cases, gamblers won't have to pay tax unless they employ the services of other people.
- If you gamble and win whilst in the USA, you need to declare it.
- Lottery winnings are not taxable.
- The Canada Revenue Agency does not impose taxes on casino winnings, however gambling losses are not deductible.