Are online slots winnings taxable in Canada?
Everybody knows that it is possible to win big when it comes to slot machine games in Canada – register and play today from the UK. You could win $10, $100 or even six or seven figures! However, this leads many people to be concerned about taxes.
Are your online slot winnings taxable in Canada, or do you get to keep every cent? It is a good question, and it is always a smart idea to keep on top of your taxes! Do not worry, we’ve got answers, so read on to find out more! We are going to be investigating:
– Casual slot players and their winnings
– Taxation on winnings of professional slot players
– Different tax brackets for slot winnings
So, do I have to pay tax?
Generally speaking, no. You will not have to pay tax on your income winnings in most cases which we think is fantastic. You can be sure to keep every penny that you earn as long as you are not earning insane amounts of money. If you are playing within Canada and have not made over $42,000 from your slot earnings, you will be fine and do not have to declare any of this. However, if you already have a full-time job and are earning $35,000 per year, then you would have to pay tax on any slot earnings over $7,000. Anything between $42,201 and $84,404 has a tax rate of 9.15%, so bare this in mind if you are making a lot of cash from slots.
What if I am earning a lot of money from slots?
As we already mentioned if you are earning over $42,201 then unfortunately your slot winnings are taxable at 9.15%, but only the cash that is over that threshold! This taxation actually jumps up to 11.16% if you are earning over $84,404, and whilst this does sound like a lot it isn’t actually that much compared to other countries! All of this can be quite confusing, so if you are ever in doubt about how much money you are earning and how much of it should be taxed, you should consult a tax advisor or call the national tax helplines. There will always be someone available to help, and paying your tax is very important so you want to ensure that you do not leave this too late!
Overall, online slot winnings are not taxable as long as you are earning less than $42,201 annually, in which case you can keep every last cent that you earn through your slot machine game experiences. However, if you are earning more than this then you will be taxed between 9.15% to 11.16%. When in doubt, seek professional financial advice regarding your taxes from an advisor or the national taxation helplines. It won’t take a minute, and you could avoid getting in trouble with the tax man! It’s always worth it – now go out there and enjoy your tax-free slots!