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Taxes on Canadian lottery winnings

Topic closed. 24 replies. Last post 10 years ago by starchild_45.

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New Mexico
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Posted: August 4, 2006, 1:38 pm - IP Logged

I recall reading on the forums several months ago that European lottery winnings were untaxed.

Purely out of curiosity, is that also true of Canadian lottery winnings?

J

Absorb the good, ignore the bad, weigh the ugly.

It's about number behavior.

Egos don't count.

 

Dedicated to the memory of Big Loooser

 

    four4me's avatar - gate1
    MD
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    Posted: August 4, 2006, 1:43 pm - IP Logged

    I recall reading on the forums several months ago that European lottery winnings were untaxed.

    Purely out of curiosity, is that also true of Canadian lottery winnings?

    J

    http://www.homepokergames.com/lotterytax.php

    Big John says. You don't hit the number. The number hits you!!!!

                   I'm not Big John, I'm Four4me, Big John's a friend.

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      Posted: August 4, 2006, 1:57 pm - IP Logged

      Australia has no taxes either.

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        New Mexico
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        Posted: August 4, 2006, 2:09 pm - IP Logged

        Thanks Larry.

        J

        Absorb the good, ignore the bad, weigh the ugly.

        It's about number behavior.

        Egos don't count.

         

        Dedicated to the memory of Big Loooser

         

          savagegoose's avatar - ProfilePho
          adelaide sa
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          Posted: August 4, 2006, 3:15 pm - IP Logged

          Australia has no taxes either.

          actually australia taxes the ticket buyers, 1/11th of the price on purchase. the winner isnt taxed


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            Posted: August 4, 2006, 3:29 pm - IP Logged

            For this reason, Australian lottery transactions often are not in whole dollars. Imagine Mega Millions/US Powerball players having to deal with change!

              starchild_45's avatar - spherewall2
              kent, washington
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              Posted: August 4, 2006, 3:30 pm - IP Logged

              Is it true that Canadian citizens don't pay taxes on lottery wins?

              If a Canadian wins the Canadian lottery, the funds are given to the winner in cash, with no tax liabilities ever.All lottery payments are in cash, with no deductions. These winnings are not taxable in Canada if you win on this lottery. There is no further liability for any amount, and you actually get 100% of the prize amount that is forecast.

              So if I won the Canadian lottery would I have to pay taxes to the US government?

              Yes, as the above rule states. If a US citizen wins the Canadian lottery, they would also be given the winning amount all at once, without any tax liability in Canada. But the US tax code requires you to list this win on your US income tax form, and to pay taxes on it.

              i am no lawyer by a long shot. still there has to be away of not claiming the winnings from canada in the US. if i hit the big one in canada and put the money in a canadian bank with no ties to the US. get a fancy lawyer to help me figure out how not to have the money show up on my US taxes. come on there has to be away.

              are there any Canadian tax lawyers out there? anybody want to shed some light on a potential big win by a US citizen on the canadian lottery? come on tax lawyers show us your knowledge.  i will listen to US tax lawyers too.

              i haven't won anything there yet but you never know it could happen.


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                Posted: August 4, 2006, 3:42 pm - IP Logged

                The link says that "all" lottery is a ripoff. This is especially true of NY Lotto, where the vig is AT LEAST 60%-only 38%-40% of money wagered is paid in prizes.

                  Coin Toss's avatar - shape barbed.jpg
                  Zeta Reticuli Star System
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                  Posted: August 4, 2006, 6:48 pm - IP Logged

                  If I remember right, the U.S. is the only country that taxes gambling winnings.

                  Early on when lottereis came in, there was even a case of Americans winning the Canadian lottery and the government wanting to collect taxes on it. The story is that the couple who won said, "For this kind of money we'll just listen to Oh Canada at the start of a baseball game."

                    dvdiva's avatar - 8ball

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                    Posted: August 5, 2006, 1:20 am - IP Logged

                    The only real advantage is that you can keep the money offshore. There are heavy taxes if you wish to take winnings and place it outside of the US.

                    As far as just not paying it a Canadian Jackpot wouldn't be enough for me plus I don't get the tickets online for that anyways. Euromillions would be a different story. Since the idiots at WA state would just assume I'm a felon anyways I would tell them exactly where to stick it. 

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                      Posted: August 5, 2006, 2:10 am - IP Logged

                      Is it true that Canadian citizens don't pay taxes on lottery wins?

                      If a Canadian wins the Canadian lottery, the funds are given to the winner in cash, with no tax liabilities ever.All lottery payments are in cash, with no deductions. These winnings are not taxable in Canada if you win on this lottery. There is no further liability for any amount, and you actually get 100% of the prize amount that is forecast.

                      So if I won the Canadian lottery would I have to pay taxes to the US government?

                      Yes, as the above rule states. If a US citizen wins the Canadian lottery, they would also be given the winning amount all at once, without any tax liability in Canada. But the US tax code requires you to list this win on your US income tax form, and to pay taxes on it.

                      i am no lawyer by a long shot. still there has to be away of not claiming the winnings from canada in the US. if i hit the big one in canada and put the money in a canadian bank with no ties to the US. get a fancy lawyer to help me figure out how not to have the money show up on my US taxes. come on there has to be away.

                      are there any Canadian tax lawyers out there? anybody want to shed some light on a potential big win by a US citizen on the canadian lottery? come on tax lawyers show us your knowledge.  i will listen to US tax lawyers too.

                      i haven't won anything there yet but you never know it could happen.

                      If you're a US citizen or you live or work in the US then your income is subject to US income taxes unless the income is specifically exempted. I don't know if Canadian lottery authorities would report winnings to the IRS, but if they don't it's extremely easy to not claim the winnings on your taxes. Just don't list it as income when you file your return for that year. You won't need a lawyer at all to do that.  Of course, if you get caught you won't have enough money for a lawyer fancy enough to keep you out of federal prison, and when the IRS gets done collecting interest and penalties you'll be left with far less than if you'd just paid the taxes in the first place.

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                        New Mexico
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                        Posted: August 5, 2006, 12:54 pm - IP Logged

                        If you're a US citizen or you live or work in the US then your income is subject to US income taxes unless the income is specifically exempted. I don't know if Canadian lottery authorities would report winnings to the IRS, but if they don't it's extremely easy to not claim the winnings on your taxes. Just don't list it as income when you file your return for that year. You won't need a lawyer at all to do that.  Of course, if you get caught you won't have enough money for a lawyer fancy enough to keep you out of federal prison, and when the IRS gets done collecting interest and penalties you'll be left with far less than if you'd just paid the taxes in the first place.

                        Seems to me when this was discussed before it was about Euro Millions.  The consensus then about that particular one among people who claimed to know was that if the money doesn't enter the US it isn't taxable.

                        I assume that's true of Euro Millions, since I don't recall anyone much disputing it at the time.

                        I was mainly just wondering if it's a different situation with Canadian ones.

                        J

                        Absorb the good, ignore the bad, weigh the ugly.

                        It's about number behavior.

                        Egos don't count.

                         

                        Dedicated to the memory of Big Loooser

                         

                          Coin Toss's avatar - shape barbed.jpg
                          Zeta Reticuli Star System
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                          Posted: August 5, 2006, 1:36 pm - IP Logged

                          Well, Americans can't legally buy a ticket for the Irish Sweepstakes...but if you win, it's taxed.

                          What?

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                            Posted: August 6, 2006, 9:15 am - IP Logged

                            Seems to me when this was discussed before it was about Euro Millions.  The consensus then about that particular one among people who claimed to know was that if the money doesn't enter the US it isn't taxable.

                            I assume that's true of Euro Millions, since I don't recall anyone much disputing it at the time.

                            I was mainly just wondering if it's a different situation with Canadian ones.

                            J

                            If you're a US citizen or you live in the US you're subject to US income tax, period. It doesn't matter where you earn it or how you earn it, even if somebody opens a casino on the moon. Anyone who claimed that keeping the money overseas makes it exempt from US taxes is not one of the people who know, but I wouldn't be surprised if somepeople said "you don't have to pay taxes" but meant something other than what you thought. I figure that everything is deductible right up until it's disallowed at the audit,  but having a deduction denied and  not claiming income you earned have very different penalties.

                              starchild_45's avatar - spherewall2
                              kent, washington
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                              Posted: August 6, 2006, 10:42 pm - IP Logged

                              If you're a US citizen or you live in the US you're subject to US income tax, period. It doesn't matter where you earn it or how you earn it, even if somebody opens a casino on the moon. Anyone who claimed that keeping the money overseas makes it exempt from US taxes is not one of the people who know, but I wouldn't be surprised if somepeople said "you don't have to pay taxes" but meant something other than what you thought. I figure that everything is deductible right up until it's disallowed at the audit,  but having a deduction denied and  not claiming income you earned have very different penalties.

                              i like this response. this makes a lot of sense but still makes me sad. i was hoping to keep it up north and not pay taxes on it. i don't want to give up my citizenship over this. i know i have to win the big one first to even have to worry about it.

                              right now i have a british columbia and quebec super 7 ticket that are going to come due soon. as the canadians say "ehhh, it could happen"