Withdraw/taxes/banking question

[ChuckTs]

I'm about to make a major (by my standards) withdrawl from my neteller account, and I have a few questions I want to ask.

I'll be making a withdrawl via Neteller for just short of $1000 CAD, to my bank account at CIBC's President's Choice bank.

I'm completely new to taxes, as I've never had a job that wasn't under the table or paid in cash, and have only the tiniest clue as to how it works, so I'll need some serious help in this department.

When the bank detects this big deposit from Neteller (they will see it as a gambling site), will they tax me or notify someone to tax me?
Is there taxing for online gambling winnings in Ontario? If so, what's the % they tax?
Could I possibly avoid the tax (say if they taxed only amounts above X dollars) by withdrawing several smaller amounts?

The reason I'm withdrawing is because my winning weeks have gotten less and less frequent, and to be honest, I think it's because I don't value my online $ enough, and I need to see it in person.
I'll still have a few hundred dollars at Stars, and I think I'm just going to bank the first $1000, and try to build on the $200 or so I have at Stars, and keep withdrawing amounts to my account.

Thanks in advance for any input.

 

[Tammy]

The US has the IRS, what governmental body does canada have for income tax? I'll look up some info for you if you want (I've got spare time today).

 

[ChuckTs]

The US has the IRS, what governmental body does Canada have for income tax? Not sure I'll look up some info for you if you want (I've got spare time today). I'd love if you could, Tammy - I've been googling, but can't find anything

see bold

 

[tranqxility]

Being in Canada you shouldn't have to worry about anything... but don't quote me on that.

 

[JeeDub84]

Chuck. I have just taken out $5000 from neteller and the government wont be able to tax me for it. All lottery and gambling winnings are tax free in Canada and they wont tax you if its not your source of income. And even if it were your source of income then you are the one that has the responsibility to claim your income at the end of the year. The money you are going to withdraw is safe from the government. I have made many withdrawls from $800-1500 and have never been called once by the bank or the government.

 

[Lo-Dog]

Short answer is no, you do not have to pay any tax on gambling winnings in Canada.

If you make more at Poker than your income from all other sources then you are considered a pro and would have to pay up. Thats not the case so you are good to go!

 

[Lo-Dog]

Being in Canada you shouldn't have to worry about anything... but don't quote me on that.

too late, you've been quoted!!!

 

[ChuckTs]

Good to hear, guys - thanks for that.
Congrats on that win again JD - what are you gonna do with the winnings?

 

[JeeDub84]

Thanks Chuck and was really glad someone from CC was there to support me even though I couldnt see or talk to them. Much love and respect. As far as the money goes, I have decided to buy a winter car and put the remainder in my RRSP. I know thats not too exciting, but need to take care of those things.

 

[Tammy]

Well gee, I just perused the entire General Income Tax and Benefits Guide for the CRA (Canada Revenue Agency) and came up with the same answer. No mention of gambling winnings at all. The only thing I saw that was remotely close was lottery winnings, which you do not have to report (unless you deposit in some interest baring account, in which case you would have to report interest earned).

 

[ChuckTs]

Thanks Chuck and was really glad someone from CC was there to support me even though I couldnt see or talk to them. Much love and respect. As far as the money goes, I have decided to buy a winter car and put the remainder in my RRSP. I know thats not too exciting, but need to take care of those things.

Boooorrrring

Always good to know that your favourite hobby can pay the bills and then some.

Well gee, I just perused the entire General Income Tax and Benefits Guide for the CRA (Canada Revenue Agency) and came up with the same answer. No mention of gambling winnings at all. The only thing I saw that was remotely close was lottery winnings, which you do not have to report (unless you deposit in some interest baring account, in which case you would have to report interest earned).

Thanks for lookin it up, jQ - I've just requested my cheque via courier mail, and it's on the way!
Not quite $1000 - it's actually around $900 after PT and PAHud purchases, but I'll be happy nonetheless.

Look out for a pic in the future

 

[BKrywko1]

From what I've read in the past, Canadians aren't taxed on gambling winnings - unless that's their main source of income. Enjoy!

 

[joosebuck]

us banks wont even notice a deposit unless it's over 10,000, if i remember correctly.

 

[Toadly]

Ok what do people who live in the U.S. do ? I see all these big time poker players on TV stating all the cash they win on-line...How does it work for them ?

I have never made a withdrawl from my on-line accounts. If I ever do, theres a lot, I would be intrested to know what is uo with that??

 

[Tammy]

They claim their winnings on their income tax forms. You can also use your gambling losses as a deduction. Perfectly legal (at least under the surmise that you were gambling in a legalized gaming facility--i.e. casino...online, not sure).

 

[bubbasbestbabe]

And if you want you can use my losses also!

 

[Toadly]

So..................... Start with 500

I win 12,000 profit over the year but,

I lost 230,000 to win 12,000.......you know counting every hand won or lost.win lose win lose win lose win win win lose etc.........

Good deal.......LOL

That should work out to a tax free return...............................................lol

 

[blankoblanco]

us banks wont even notice a deposit unless it's over 10,000, if i remember correctly.

But what if they were several smaller deposits from Firepay which added up to $10,000? I maybe should have thought about this before I withdrew $1200 from my Firepay account into my bank account the other day. I'm in the U.S., so now I'm wondering what the chances are that I'm going to have to pay taxes on this or further withdrawals.