Canadian player with a tax question

[mrburr]

So I am a Canadian citizen who works in the United States under a work visa. I am proud to state that 2006 was the first year I actually won money playing poker online.

Although I am Canadian and my accounts are Canadian, I have been playing from the US, so for the last few months I have only been playing on sites that have not banned US IP's (yet).

That being said, do I need to report my poker income to either the IRS or Revenue Canada or pay taxes on it? Does anyone know, what is the protocol for Canadian citizen who won money gambling while temporarily residing in the US?

[Superflush]

I believe you are supposed to now file a tax return in the US and pay taxes on your winnings. Although I think you can claim gambling losses to offset the income and no taxes will be due. I'm not sure if you're supposed to withhold taxes right away. I guess it all depends on how much you made.

But then again if your address is a Canadian address on the poker site, how would they know you were in the US?

[MexKrax]

If you are considered a US resident for tax purposes then you definately need to report your winnings to the IRS and pay taxes on them. If you're filing as a non-resident alien then you probably don't need to report your winnings to the IRS.

Can you be more specific what you mean when you say "temporarily residing in the US?" If you're physcially present in the US for more than 183 days during the year you'll be considered a US resident for tax purposes.

[mrburr]

It says on the form I am an "Alien Authorized to Work." Basically, I was a student who got hired by a US firm on a work visa. I will definitely be working over 183 days this year in the US. I know I will be paying income tax to the US governemnt. What is not clear is whether I am legally obligated to report/pay gambling income.

[Superflush]

If you're in the US for over 183 days then you'll have to report all your world wide income on your US return. That means winnings made in Canada or US for that year. For Canadian tax purposes, you'll be considered a non-resident and you'll only have to report your Canadian income on your Canadian tax return (just for the year where you were away for 183 days - this can change every year).

But how much winnings are we talking about? Just put gambling losses to offset the income.