Do You Have to Pay Taxes on Online Casino Winnings?

The Canada Revenue Agency (CRA) considers gambling winnings to be taxable income. That means if you hit the jackpot at an online casino, you’ll have to pay taxes on your winnings.

The good news is that you can deduct your gambling losses from your taxable income. So, if you had a net loss for the year, you wouldn’t owe any taxes on your winnings.

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Gambling income includes but is not limited to money won in casinos, lotteries, raffles, horseraces, and sports betting. If you receive gambling winnings in the form of property or services, the fair market value of the prize is considered taxable income.

The CRA requires that you keep detailed records of your gambling activities in order to deduct your losses. This includes dates, types of games played, and amounts won and lost.

PRO TIP:When gambling online, remember that any winnings must be reported to the IRS and are subject to taxes. For taxable winnings, you will need to fill out a W-2G form and file it along with your other taxes. Be sure to keep accurate records of your online gambling activities in order to properly report your winnings.

You can keep track of your wins and losses using a simple spreadsheet or by saving receipts from your casino visits.

If you have a net gambling loss for the year, you can claim it on your tax return. To do so, you’ll need to file a T1 General form and attach a statement detailing your losses.

The CRA will then offset your gambling winnings against your losses and only tax you on your net winnings (if any).

So, while you do have to pay taxes on online casino winnings in Canada, you can offset your taxes by claiming your losses. Be sure to keep detailed records of all your gambling activity so you can take advantage of this deduction come tax time.